Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Binance coin [BNB] took more losses after a bearish breakout over the weekend. It traded between $315.5 – $303 for the past three weeks. The weekend downturn followed From Bitcoin [BTC] sharply down from $27,000 to around $26.8k at the time of writing.
A weak BTC means that sellers can continue to overrule the BNB market unless BTC changes course during the week.
When do bulls get a deferral?
Source: BNB/USDT on TradingView
Since mid-April, BNB has been in a downward trend on the lower timeframe charts, especially the 4-hour chart. The second half of May brought BNB into extensive price consolidation within $315.5 – $303.
The close-range formation extended into early June, but sellers shredded the $303 low after BTC lost $27,000 on June 4. In addition, a trendline resistance extends from mid-April, indicating that BNB has yet to reverse its downtrend.
With the higher time frames also solidly bearish, sellers may continue to monitor BNB. Heading south, the $294 and $286 levels are worth watching as the $300 psychological and support level bursts.
Alternatively, bulls may gain some leverage as BNB moves close to the low $303 range. However, they need to clear the mid-range confluence area and trendline resistance near $309 to target the high range at $315.5. Such an uptick could be likely if BTC regains $27,000 and rises.
Meanwhile, the RSI hit the oversold zone while the OBV fell, highlighting a significant drop in buying pressure and demand.
Negative sentiment amid whale strikes
Source: Sentiment
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BNB recorded more than 15 whaling actions with more than $1 million each traded between the weekend and press time. In addition, the whale action coincided with BNB’s sharp drop from $307.8 to less than $300, as seen before going to press.
Similarly, trading volume has dropped significantly since the end of May, from over $550 million to under $400 million at the time of going to press. Sentiment also fluctuated over the same period, but was deep in the red at the time of writing, signaling investors’ bearish outlook.