Bullet Points
• Binance Coin has recovered from its mid-December plunge, flipping $256 to support and climbing higher.
• Bitcoin’s surge past the $17k mark has created inefficiencies to the south that BNB can fill.
• A move above the bearish order block at $278 may see BNB rise to $300 and $315, while a rejection in the $275-$280 area could lead to a downward price movement.
Binance Coin, the world’s fifth-largest cryptocurrency by market capitalization, has been on the rise in recent days. After a sharp plunge in mid-December, the cryptocurrency has been able to recover, flipping the $256 mark to support and climbing higher. This move was likely supported by Bitcoin’s surge past the $17k mark, creating inefficiencies to the south that Binance Coin can fill.
Looking at the BNB/USDT 4-hour chart, the $278 mark and its vicinity had a strong confluence of resistance levels. Traders could wait for a lower timeframe break in the structure downward before shorting. On the flip side, the $250 area was expected to pose stiff resistance to the price, but the asset was able to flip $256 to support and climb higher.
The strong surge in recent days has left inefficiencies to the south that the price could fill. This gives traders an opportunity to enter short positions, provided the price can break beneath the $270 mark and then retest. A move above the bearish order block at $278 may see Binance Coin rise to $300 and $315.
In conclusion, Binance Coin has been on the rise in recent days, with Bitcoin’s surge past the $17k mark creating inefficiencies to the south that BNB can fill. Traders can wait for a lower timeframe break in the structure downward before shorting, while a move above the bearish order block at $278 may see BNB rise to $300 and $315. On the other hand, a rejection in the $275-$280 area could lead to a downward price movement.