Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Binance Coin showed bullish intent with a series of higher lows in the past two weeks.
- Resistance levels to the north could offer a good bullish target, but the idea hinges on Bitcoin continuing its upward trajectory.
Binance Coin [BNB] has not yet broken past the $250 psychological level, even though the price formed a series of higher lows recently. On the higher timeframe charts, the token does not have a convincingly bullish outlook.
Read Binance Coin’s [BNB] Price Prediction 2023-24
The losses in May and June have yet to be reversed, but the bulls are slowly building up a head of steam. A Bitcoin [BTC] rally could spark a BNB breakout past $250, but it was the $265 resistance that was the more critical level to watch.
The trend is your friend until it is not, and right now BNB is trending upward
On the 4-hour chart, the price action remained bullish. In early August, BNB threatened to fall beneath the trendline support (yellow). On 3 August, the bulls were able to stabilize and push prices higher.
The market structure flipped bullishly when the token made a higher high on 6 August on the price chart.
This was accompanied by a slow rise in the OBV, which signaled increased buying pressure compared to late July. However, the RSI flip-flopped about the neutral 50 mark over the past week. The momentum is on the side of the bulls for now.
A revisit to the bullish order block at $240 or the trendline support could offer a buying opportunity with a tight stop-loss. The idea would be invalid if BNB slipped below the $238.4 level, a local low from 3 August.
The $258 and $265 levels can be targeted on a move upward. The $258 level was the most feasible since early June, and the $258-$265 region can act as resistance based on earlier price action.
Spot CVD shows the bulls are back in business
Open Interest has been muted over the past five days. Yet in August, the spot CVD was in a steady uptrend. This showed that there was strong demand in the short term.
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But with BTC just below the $30.2k level at press time, buyers can wait and see if the demand is strong enough to break out.
Rising spot CVD also explained why BNB refused to surrender its trendline support. Although speculator sentiment is lukewarm, continued progress higher will encourage bulls and could see the OI climb higher.