The market structure of Binance Coin remained unfavourable across both higher and lower periods.
Due to sellers’ supremacy, BNB can go below $205.
Sellers were trying to break the bullish resolve at $205, where Binance Coin [BNB] was hovering. October saw BNB continue its sideways trend from September, as buyers were unable to push the price beyond $220.
A 6.5% decline followed the most recent rejection at the $220 level on October 2. This gave sellers another chance to turn the $205 support level into resistance.
Can sellers ultimately overcome the $205 price level’s bullish defence?
Bulls have found a foothold around the $205 support level, despite the negative market structure of BNB. The level has already been challenged three times before, with bulls coming out on top each time.
However, when pending buy/sell orders at that level decrease on each retest, crucial price levels have a tendency to decline.
Looking at the signs on the chart suggested that sellers could have success on this retest. The relative strength index (RSI) moved closer to the oversold area and stayed below the neutral 50. This demonstrated the ongoing push to sell.
BNB Bulls Face $205 Battle Amid Rising Pressure,BNB Bulls Face $205 Battle Amid Rising Pressure
Similarly, BNB had significant capital withdrawals that persisted, as seen by the decline in the Chaikin Money Flow (CMF) to -0.10.
If the $205 support is broken, BNB may go towards the $190 weekly support. As a result, merchants would have an 8% profit margin above the going rate. Alternatively, BNB’s range structure may remain over time if the bulls manage to maintain the $205 support once again.
Most of them are shorts
Coinglass’s exchange Long/Short Ratio showed how sellers were arranging themselves to take advantage of the best shorting opportunity.
52.12% of open contracts were owned by shorts, and the difference between short and long holdings was $6 million. This indicated a negative inclination with a significant likelihood of BNB falling below $200.
BNB Bulls Face $205 Battle Amid Rising Pressure,BNB Bulls Face $205 Battle Amid Rising Pressure,BNB Bulls Face $205 Battle Amid Rising Pressure