Binance Coin [BNB] has been closely mirroring the performance of Bitcoin [BTC] in recent weeks. Similar to many other cryptocurrencies, BNB has shown a strong recovery, with a 9% increase over the last 30 days.
Currently trading at $595, BNB faced resistance once again when approaching the $600 mark. Despite this, signs of bullish activity are emerging, indicating a potential uptrend in the near future.
Analysis of BNB Price
The inability of BNB to surpass the $600 level may signal profit-taking by sellers.
Nevertheless, the formation of a bullish crossover on the one-day chart, where the 50-day Exponential Moving Average (EMA) has crossed above the 100-day EMA, hints at a possible breakout on the horizon.
This type of crossover typically indicates a growing short-term momentum compared to the long-term trend.
This development could attract buyers looking for an entry point in BNB, potentially pushing prices higher.
Increasing buying activity is evident in the volume histogram bars, pointing towards higher buying pressure than selling pressure.
Additionally, the Chaikin Money Flow indicator indicates a healthy reading of 0.30, suggesting active buyer participation. The CMF’s upward trajectory indicates a sustained buying momentum.
If this strong buying interest persists, BNB may be poised for a significant rally that could see it break above the key psychological level of $700.
The surge in buying activity is anticipated to intensify this week following the anticipated release of former Binance CEO, Changpeng Zhao, from incarceration on September 29.
Prior to this event, BNB might continue to closely follow the general market movements. Volatile price fluctuations could lead to potential support retests around the 0.786 Fibonacci level at $585.
Insights from Liquidation Data
Analysis of BNB’s liquidity heatmap on Hyblock Capital reveals heightened liquidation levels between $600 and $630.
A potential rise in BNB’s price towards these liquidity levels could trigger a short squeeze, potentially compelling short traders to close their positions by buying BNB. This scenario might further drive up the price.
These liquidation thresholds highlight a robust resistance zone between $600 and $630. A successful breach of these levels by BNB could indicate a significant shift in market sentiment favoring the bulls.
In the Futures market, BNB remains a popular choice, as evidenced by the Open Interest standing at $620 million at the current moment according to Coinglass.
Although this figure has slightly decreased from its peak of $677 million on September 24, interest in BNB futures remains strong.