Binance Coin (BNB) retested the low it set on Friday, February 6, at $570. This was a worrying sign for bulls and long-term investors, as it was a sign of bearish dominance.
Sellers were threatening to push prices below the $570 low and force the exchange token to continue its next downward move. Data from Coinalyze was consistent with bearish dominance.
Although the funding rate has remained positive, the spot CVD has steadily declined over the past week. Additionally, when the BNB price fell to $570, the open interest increased from $530 million to $560 million.
This meant that short sellers were entering the market during the decline. OI has slowed since then, with the price briefly rebounding up to the $590 resistance.
BNB’s woes aren’t just short-term
The relative weakness against Bitcoin (BTC) was concerning. The February low was $66,000, and the current market price is $66.6,000. Meanwhile, BNB tested February lows.
Speculative conviction and lack of demand could cause BNB to fall even further.
The RSI on a one-day time frame was 34, showing strong bearish momentum. OBV rebounded higher in March, but slowly declined again.
The $577 and $604 were the key levels to watch over the coming days. A bounce above $604 would be a short-term victory for the bulls, although they will not be able to dictate the overall trend.
Meanwhile, the loss of the $577 support means the next target would be $530.
The 3-month liquidation heat map showed that further decline was likely. There was a pool of liquidity accumulated around $565 that could push BNB lower.
To the north, the $650 and $700 regions have seen extended selloffs and could be targeted in the event of a price rebound.
Based on the available evidence, traders should expect BNB to move towards $530 next. A rebound up to $600, or even up to $650-700, would be favorable for selling.
Final summary
- BNB fell rapidly on Thursday, April 2, to test the $570 support level that marked the low of the February crash.
- The rise in open interest during Thursday’s price decline signaled a bearish speculative conviction.
