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- Binance Coin’s weekly chart outlined two major levels that have not yet been breached.
- The short-term bias has been bearish, but traders should beware of a short squeeze.
Binance coin [BNB] showed a bearish divergence a few days ago and the exchange token’s price has fallen 2% since then. The rejection of the psychological $600 in the last week of August was still in play.
The higher time frame charts outlined levels that bulls and bears would likely fight over in the coming weeks, but in the meantime the range will come to rule.
Binance Coin’s two-month range formation
Source: BNB/USDT on TradingView
The orange and green levels at $454.8 and $605.6 respectively marked the recent low and high on the weekly chart. It is within these important, structure-determining weekly levels that the range formation of the past eight weeks has taken place.
The weekly market structure was bullish, but the drop below $450 in August meant the sellers’ dominance was visible. The CMF fell below +0.05 on the daily chart, underscoring the weakening bulls.
The OBV has risen slightly over the past month, giving holders some hope for an increase. As things stand now, the $600 and $450 are formidable resistance and support levels, but the latter is probably the weaker of the two.
The liquidation levels indicate a short squeeze for BNB
The weekly resistance zone also formed a high-density liquidity pool for Binance Coin at $615. Therefore, the exchange token’s prices will gravitate north, but will likely be quickly rejected after a move past $600.
Read Binance Coin’s [BNB] Price forecast 2024-25
The lower liquidation levels showed that the imbalance was increasing. The number of short liquidations began to exceed the number of long liquidations. This meant that a short squeeze was possible.
A price increase to $507 and $512 is likely. AMBCrypto examined the 1-hour price chart and found a narrow range between $498 and $513, with $506 recently serving as resistance.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
