Binance Coin’s 9% drop reinforces this idea about BNB and its sellers

Binance Coin’s 9% drop reinforces this idea about BNB and its sellers

Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author

  • Binance Coin breaks down below range lows
  • Repeated retests of the support zone left buyers exhausted

Binance Coin had a healthy start to November, but it all went haywire for the bulls. The implosion of FTX brought many rally coins to a halt. Now BNB has a bearish market structure on the higher time frame charts, and sellers will look for an opportunity to position themselves short in the futures market.

Read Binance Coins [BNB] Price Forecast 2023-24

Bitcoin has also been weak on the price charts for the past few days. Therefore, there was a possibility that there could be another downward movement in the crypto market in the coming weeks. Binance Coin would likely follow Bitcoin’s trend. The bullish order mentioned in a recent block of articles did not hold.

The bullish order block was broken after repeated retests

Binance Coin suffers another 9% loss in two days to reinforce bearish momentum

Source: BNB/USDT on TradingView

The more often a support level (or area) is retested, the weaker it becomes. This was proven for Binance Coin in recent days. On Sept. 19, BNB formed a bullish order block on the 12-hour time frame. This candle was also close to the significant level of $256. In addition, it had confluence with the lows for Binance Coin, a range in which it has been trading since late August.

The Relative Strength Index (RSI) fell below the neutral level of 50 as BNB withdrew all of its gains to drop from $360 to $280. Although the On-Balance Volume (OBV) took a hit, in October it was near a support zone that acted as resistance. Further declines on the OBV would be an additional sign that sellers were here to stay.

Aside from the technical indicators, the price action itself has been strongly bearish lately. Despite the short-lived pump to $398 earlier this month, the selling pressure that started at the $360 turned the structure bearish. Neither the $300 zone nor the $260 zone could stop the bears’ advance.

In the next two weeks, the former bullish order block is likely to be retested as a bearish breaker. Therefore, it can provide shorting opportunities targeting $240 and $216 for ambitious short sellers. A move back above USD 270 could indicate that bulls were entering a fight, and could give traders a bullish bias in a lower time frame.

Average coin age in an uptrend to show accumulation

Binance Coin suffers another 9% loss in two days to reinforce bearish momentum

Source: Sentiment

The average coin age saw a sharp drop in early October, but has been on a steady upward trend ever since. This meant that fewer coins were moved from their current address and this may indicate an accumulation phase. However, this statistic by itself is not a good indication of local tops and bottoms. Rather, it was something to keep an eye on.

Similarly, the number of active addresses is dropping in 30 days since May. It bottomed out in mid-October and has been slowly creeping up ever since. Again, it may not provide any useful information for traders, but rather something for investors to keep an eye on. The dormant circulation (90-day) metric did not see a sharp spike in recent weeks of heightened volatility, suggesting that holders of the past 90 days may not have panicked despite falling prices.

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