Original title: BNB likely to hit $600 soon, 2 clues reveal
Original author: Saman Waris
Original source: https://ambcrypto.com/
Compiled by: Mars Finance, Eason
BNB May Hit $600 Soon, Two Clues Reveal Why
$600 and $450 are strong resistance and support levels respectively, but the latter is likely to be the more vulnerable of the two.
The weekly chart for Binance Coin shows two important levels that have yet to be breached. The short-term bias is bearish, but traders need to beware of a short squeeze.
Binance Coin [BNB] saw a bearish divergence a few days ago, and the price of the exchange token has fallen by 2% since then. The rejection from the psychological $600 resistance level in the last week of August is still in play.
On the higher time frame charts, levels are outlined that bulls and bears are likely to battle over in the coming weeks, but in the meantime, price ranges will continue to dominate the market.
Binance Coin Two-month range formation
Source: BNB/USDT on TradingView
The orange and green horizontal lines at $454.8 and $605.6 respectively mark the recent low and high on the weekly chart. Between these two structurally important weekly levels, a range has formed over the past eight weeks.
The weekly market structure is bullish, but the August break below $450 suggests seller dominance is evident. The CMF (Money Flow Indicator) has fallen below +0.05 on the daily chart, highlighting the waning power of bulls.
The OBV (On Balance Volume indicator) has risen slightly over the past month, providing hope for upside for holders. Currently, $600 and $450 act as strong resistance and support levels, respectively, but the latter could be the more vulnerable of the two.
Liquidation levels show BNB short squeeze
Source: Hyblock Capital
A high-density liquidity pool has also formed at the weekly resistance zone, which is located at $615 on Binance Coin. Therefore, the exchange token price will be attracted to move northwards, but it may be rejected quickly after breaking through $600.
Liquidation levels on lower time frames show a widening imbalance. Short liquidations are starting to outweigh long liquidations, which suggests a short squeeze could be on the horizon.
There is a high probability that the price will rebound to $507 and $512. AMBCrypto studied the 1-hour price chart and found a small range between $498 and $513, with $506 acting as resistance in the near term.
