Binance Coin price broke below the ascending trendline support on Wednesday, signaling a break in the bullish market structure.
On-chain data shows that BNB’s long-to-short ratio is less than 1, signaling a bearish trend.
A daily candlestick close above $588.3 will invalidate the bearish thesis.
Binance Coin (BNB) fell below the ascending trendline support on Wednesday and dropped 3% on Thursday. On-chain analysis shows that the long-short ratio is below 1, indicating bearish sentiment and suggesting that BNB price could fall in the coming days.
BNB price to fall after breaking below ascending trendline
BNB fell below the rising trendline support on Wednesday and fell 3% to $537.8 on Thursday. The trendline is formed by connecting multiple swing lows between mid-March and late June, as shown in the chart below.
If this trend line acts as a pullback resistance, the BNB price could plummet by 11% and retest the March 19 low of $495.8.
The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart support this bearish thesis as both indicators are below their respective neutral levels of 50 and 0. This suggests that the momentum continues to be in the favor of the bears, which could lead to further declines in the BNB price.
BNB/USDT Daily Chart
According to Coinglass, the long-short ratio indicator measures market sentiment and potential future price action in the cryptocurrency market based on traders’ relative positions.
In the case of BNB, the long-to-short ratio is 0.759. A ratio below 1 typically reflects bearish sentiment in the market as more traders expect the price of the asset to fall, further strengthening the bearish outlook for Binance Coin.
BNB Long-Short Ratio Chart
However, if BNB price closes above $588.3 on the daily chart, the daily high from July 1 would produce a higher high and signal a breakout in the market structure. Such a move would invalidate the aforementioned bearish thesis and could spark an 8% rally from the June 12 daily high to the previous resistance at $635.4.
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