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Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
- Retesting the $280 area saw a sharp bullish reaction.
- $307 has offered resistance over the last ten days but was beaten in the last few hours of trading.
Bitcoins [BTC] continues to be above the $23k mark, as buyers can wait for a move above $23.2k to buy on the bullish momentum. Instead, they can wait for a drop of up to $22k before buying. However, a daily session close to $20.6k would suggest the bears have the upper hand.
Read Binance Coin [BNB] Price Predictions 2023-24
BTC’s bull dominance in the last three weeks saw Binance Coin [BNB] list of important advantages too. More impressively, the gains pushed prices above $314, where they have been struggling for the last week.
Liquidity over $315 has been raised- what next?
Source: BNB/USDT on TradingView
Liquidity is where a large number of stop-loss orders are located. In the last ten days, $300-$315 has turned into resistance, as was the case in late November. This changed in the last 24 hours of trading when BNB was able to push higher to as high as $323.5.
At the time of writing, the lower time frame registers a drop from $323 to $314. This could be a bullish retest of the previous resistance, and Binance Coin could continue to head higher. CMF has been above +0.05 for the whole of January, indicating significant capital inflows to the market. The RSI is also registering a strong bullish momentum, but is about to form a bearish divergence.
Such a divergence need not indicate an uptrend reversal – on the contrary, it could be the first sign of a pullback towards $300. Hence, buyers can wait for a plunge into the $300-$310 area to buy BNB. Closing the daily session below $298 will turn the structure to a bearish bias. Hence, this could be a turn off for BNB buyers in the $300 zone.
The average coin age started another uptrend and the MVRV ratio also slid higher
Source: Santim
There was a sharp drop in the MVRV ratio and the average coin age on January 17th. Inactive circulation (90 days) also saw sharp spikes indicating intense short-term selling. The next day, January 18, the price dropped from $305 to $281. As seen in the price chart, this was a retest of the bullish order block from earlier this month, and it was followed by a rally.
Since then, the average coin age has increased to reflect network accumulation. The MVRV ratio is also reset, though not completely.
Realistic or not, this is the market cap of BNB in BTC terms
Based on technical and on-chain metrics, BNB holders could look to book gains, thus seeing the coin drop towards $300. However, the market structure is bullish, and buying pressure is visible. After $300-$315, the next significant resistance lies at $350.
As such, there is a good chance that Binance Coin can rise to these heights, as long as Bitcoin does not fall below the $22k mark.
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