Binance Coin (BNB) Under Pressure

Binance Coin (BNB) is exhibiting bearish tendencies as it retests the $570 support level, mirroring the lows experienced during the February market correction. This development signals potential further downside for the cryptocurrency, prompting traders to closely monitor key price points.

Price Action and Key Levels

BNB revisited the $570 level on Thursday, April 2nd, a concerning sign for bullish investors. Persistent selling pressure raises the risk of a break below this critical swing low, potentially accelerating a downward trend. Key levels to watch include resistance at $577 and $604.

Technical Indicators Point to Bearish Momentum

Data from Coinalyze shows a consistent decline in the spot CVD (Cumulative Volume Delta) over the past week, despite positive funding rates. This indicates active short-selling during the price decrease. The Relative Strength Index (RSI) on the daily timeframe currently stands at 34, confirming strong bearish momentum.

While the On-Balance Volume (OBV) showed a rebound in March, it has recently begun to decline. Open Interest (OI) has also slowed after a brief recovery to the $590 resistance level, creating mixed signals for investors.

Bitcoin Correlation and Liquidation Heatmap

Bitcoin, the leading cryptocurrency, previously saw February lows at $66,000 and is currently trading around $66,600. BNB’s simultaneous retest of its February lows suggests a correlation with Bitcoin’s performance.

The 3-month liquidation heatmap indicates a higher probability of further price declines. A concentration of liquidity around $565 could pull BNB prices lower, while areas at $650 and $700, where significant long liquidations have accumulated, may trigger price bounces.

Trading Strategy Considerations

Based on current analysis, traders should prepare for a potential move towards $530 for BNB. Any price increases to $600, or even $650-$700, should be considered potential selling opportunities.

Source: AMBCrypto, established in 2018, provides blockchain and cryptocurrency news to over one million readers monthly.