Binance Coin (BNB) retested the low set at $570 on Friday, February 6. This was a worrying sign for bulls and long-term investors because it was a sign of a bearish trend.
Sellers were threatening to push prices below the $570 low and force the exchange token into its next downward move. Coinalyze data supports the bearish trend.
Spot CVD fell steadily last week while the funding rate remained positive. Additionally, when BNB The price dropped to $570, Open Position increased from $530 million to $560 million.
This meant that short sellers entered the market during the decline. OI has slowed since then and the price briefly jumped towards the $590 resistance.
BNB’s troubles aren’t just short-term
Relative weakness against Bitcoin (BTC) It was a concern. The February low of the leading cryptocurrency is $66k and the current market price is $66.6k. Meanwhile, BNB tested February lows.
Speculative belief and lack of demand could send BNB lower further.
On the 1-day timeframe, the RSI was at 34, indicating strong bearish momentum. OBV rose in March but was slowly falling once again.
$577 and $604 are the key levels to watch in the next few days. A return above $604 could be a short-term gain for the bulls, but they will not determine the overall trend.
Meanwhile, losing the $577 support will mean that the next target will be $530.
The 3-month liquidation heat map showed that further downside movement is likely. A liquidity cluster has formed around $565 that could push BNB lower.
In the north, there have been prolonged liquidations in the $650 and $700 regions and could be targeted in case of a jump in prices.
Based on the available evidence, investors should predict that BNB will move towards $530 from now on. A rise to $600 or even $650-700 could be for selling purposes.
Final Summary
- BNB fell sharply on Thursday, April 2, to test the $570 support level, which marked the low of the February crash.
- The increase in Open Interest during Thursday’s price decline signaled bearish speculative belief.
