Journalist
Posted:
- BNB faced resistance during the bearish one-week order block at $300.
- A retracement to $260 was possible, but it is unclear whether the pullback will be that deep.
Binance coin [BNB] broke out on December 26 beyond an important resistance zone. It rose from $266 to $303.2 within a day, a move of 14.85%. At the time of writing, BNB prices were pushed below the $300 mark.
AMBCrypto reported that the Binance Smart Chain [BSC] experience a carpet pull on the same day. The target token was OmniCat [OMNI]but its consequences can extend beyond the project.
BNB maintains a strong bullish outlook
Source: BNB/USDT on TradingView
Despite the news of the ‘back pull’, BNB showed strong bullish conviction from market participants. The market structure on the one-day chart was solidly bullish. Moreover, the resistance zone of $266-$276 was also broken.
This area has been significant since August 2022 and is classified as HTF resistance. The rejection of $305 on December 16 also came from a significant resistance zone. The $300 level is also a psychological resistance on round numbers.
The $300-$315 zone became a strong resistance zone within a week. Above that, $350-$355 is also extremely strong as a supply zone. The $320-$350 area has also been hotly contested in the past.
At the time of writing, the RSI stood at 73.4, reflecting solid upward momentum. The OBV trended higher in December to highlight the intense buying pressure.
Despite this evidence, a brief withdrawal is possible. If that happens, the $280 level and the $260-$272 regions are expected to act as support.
Source: Hyblok
AMBCrypto’s technical analysis of Hyblock’s liquidation heatmap showed the levels that traders can keep a close eye on. The $260 zone is particularly important on the liquidation heatmap.
To the north, the $298.8-$308 zone also sees a fair amount of liquidation levels.
Read Binance Coin’s [BNB] Price forecast 2023-24
Besides the $260, the $270 level and the $277-$282 area could also act as a demand zone if BNB prices fall lower.
This is where a jump is expected, but Bitcoin [BTC] will likely need to hold above the $42,000 support for BNB to continue its rise.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.