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BNB Rockets 20.5% in 4 Days: Is a Retracement Coming?

Summary

  • Binance Coin [BNB] had a strong reaction to Bitcoin’s gains and gained 20.5% within four days.
  • The daily market structure has turned bullish, but a pullback as deep as $290 remains a possibility.
  • Strong confluence of support at $292, POC at $304.2 and VAL High/Low at $322.8 and $274.7 respectively have been identified.

Overview of BNB Price Action

Binance Coin [BNB] reacted extremely positively over the past two days of trading, with an impressive 20.5% gain seen within four days due to the bullish euphoria surrounding Bitcoin’s gains across the crypto-market. Despite this, a retracement before a sustained move higher up the charts remains possible too.

Daily Market Structure

On the daily timeframe, the market structure for Binance Coin seemed to be bullish once more. The recent lower high at $294 was beaten during the latest reversal, but the $309-mark has posed some resistance over the past 24 hours. A strong confluence of support at $292 was identified based on Volume Profile Visible Range (VPVR) which showed that Point of Control (POC) was at $304.2 while Value Area High (VAH) and Low (VAL) were found at $322.8 and $274.7 respectively.

Technical Indicators

The Relative Strength Index (RSI) crossed over above the neutral 50-level which indicated that bullish momentum had taken root in BNB’s price action, further confirmed by Obvial Volume (OBV). Fibonacci retracement levels also revealed that 78,6% retracement level lay at around 276$, almost coinciding with VAL low.

Signs Of Buying Pressure

The Funding Rate had been negative over the last two days but it has since climbed back up into positive territory indicating longer term buyers are dominating in this market – Signs of possible flip in sentiment – which was further supported by rising spot CVD underlining strong demand.

Conclusion
Therefore, longer-term buyers can wait for a retracement into the 285$-292$ zone while risk-averse traders can wait for a positive reaction over three days before looking to buy and trade with trend