Binance Coin tested the $827 technical support level. This area had been a significant demand zone in August and September, and proved to be so once more.
A shrinking onchain activity and DEX volume drove the drop below $1,000.
By contrast, the change in Binance’s leadership could see a shift in focus from hyper-growth to a more balanced platform. However, the North Dakota lawsuit could impact Binance and BNB prices.
Trend break sparks short-term optimism
Source: BNB/USDT on TradingView
On the 1-day chart, though, the trend was firmly bearish, and the internal structure shifted bullishly. This happened when the lower high at $906.5 was breached on Wednesday, the 3rd of December.
To the north, the $950 zone was an imposing resistance zone. It was a key battleground in November and will not be easy to overcome.
The DMI indicator confirmed the strong bearish trend with both the ADX and -DI above 20. The CMF, on the other hand, continued to oscillate around the neutral values. Significant, persistent capital flows in either direction were not sustained.
Source: CoinGlass
The Liquidation Map showed that there was a cluster of high-leverage liquidation levels in the $910-$920 area. This is highly likely to be targeted in the next few hours.
Further up, the $950 area also had relatively high-leverage liquidations.
The Cumulative Short Liquidations leverage was much greater and closer than the long liquidations. Therefore, BNB is expected to advance higher, squeezing short positions before resuming its downtrend.
BNB bulls watch out for…
A breakout past $1,000. As a key psychological level, a daily session close above $1,000 would represent acceptance.
In particular, the $1,019 is a swing high from November that must be breached to re-establish an uptrend.
Traders call to action- Prepare for a short squeeze
AMBCrypto believed that the bearish trend still held strength. The lack of buying pressure on the CMF and the relatively low trading volume supported the idea that the current rally was a bounce.
A move toward $950-$1,000 area would be difficult to breach and would offer short-selling opportunities.
Final Thoughts
- BNB sank below the $1,000 level as onchain activity, DEX volume, and Stablecoin Supply shrank on the network.
- A recovery is possible, but difficult, and sustained demand is needed. Till then, traders can assume a bearish bias.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Source: https://ambcrypto.com/bnb-price-prediction-will-it-conquer-1000-again-in-december/
