Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Late November saw a bullish shift in the market structure
- BNB has been losing slowly since reaching $313 and could suffer further losses.
Since 9 November, Bitcoin trading ranged from $17.7k up to $15.6k. The volatility has decreased, with BTC trading between $16.7k and $17.3k in the last two weeks. Binance Coin recorded a bullish break within the market structure. BNB bulls faced stiff resistance from $313.
Read Binance Coin’s [BNB] Prediction of Price 2023-24
In the past ten trading days, BNB’s Open Interest has fallen. Binance Coin may experience further losses. This is a great opportunity for buyers to take longs.
Binance Coin was rejected at $313. It has since fallen slowly to $284
Source: BNB/USDT TradingView
The price formed a bearish block on 18 November. At that moment, the market structure was bearish. A strong rebound above $276 was seen a few days later, flipping the bearish view and putting bulls back in control. A market structure change towards the bullish was evident, with a surge of $313 following. The bullish breaker was created by the cyan-colored bearish order block.
This surge was rapid, so inefficiency was evident. The fair value gap was approximately $275 to $290. FVG confluences with the $276 level, as well the bullish breaker.
A buyer may also be interested in a return to this area. A swing failure pattern around the $260-$270 mark could be used to warn buyers about an opportunity. Profit can also be taken north by a move to $300-315.
Since December’s beginning, the RSI has been at close to neutral 50. It was unable to match the momentum of BNB. The OBV and CMF also remained flat over the past few trading days. Neither the sellers nor the buyers were dominant based on the past week’s trading.
60-days MVRV was again in decline. Mean coin age shows short term accumulation
Source: Santiment
The Santiment data revealed that the 60-day ratio of MVRV to local tops has been working well in recent months. This also happened between 3 and 26 Nov. The MVRV was very close to zero at the time of writing.
The MVRV peak has seen a rise in the 90-day mean coin age metric. This indicated that BNB tokens remained in their addresses and a network-wide accumulation.
Source: Coinglass
Open Interest was still not bullish on the side. On the OI, there was a sharp climb after the rally of $260 to $313. The OI declined gradually and the price fell after this rally. This could indicate that long positions are being discouraged.
In conclusion, while a move to $270-$280 may offer buying opportunities for bulls, they must wait until an entry trigger is set before buying.