• Binance Coin (BNB) recently gained 20.5% over four days as Bitcoin’s gains translated across the crypto-market.
• The daily market structure has turned bullish, although a pullback to $290 is still possible.
• Demand for BNB is strong as indicated by the spot CVD and the rise in funding rate, while open interest appears to be decreasing.
Bullish Reversal of Binance Coin
The Recent Gains
Binance Coin [BNB] reacted extremely positively over the past two days of trading, with a gain of 20.5% within four days. This was due to the bullish euphoria that followed Bitcoin’s gains translating across the crypto-market. A retracement before a sustained move higher up the charts remains possible too.
Daily Market Structure
On the daily timeframe, the market structure for Binance Coin seemed to be bullish once more. The recent lower high at $294 was beaten during the latest reversal, but there was some resistance at $309-mark over the past 24 hours. Additionally, there was confluence of support at $292 and Fibonacci retracement levels 78,6% which stood at $276.7. Moreover, price action from early March showed that $285-$292 region acted as significant support on lower timeframes. This was further confirmed by RSI crossing above 50 level and OBV registering gains which could continue further ahead.
Demand & Open Interest
Spot CVD surged past February highs in response to demand while funding rate had been negative over last two days but slowly climbed into positive territory indicating long positions were dominant in market again . On other hand open interest dipped over last 48 hours whereas price appreciated during this time showing weakening bullish sentiment in market .
Longer-term buyers can wait for a retracement into $285-$292 zone or risk-averse traders can wait for positive reaction over 3 days before looking to buy and trade with trend .