These on-chain metrics suggest Binance Coin price will pump back to $280
- Binance Coin price remains in bullish territory on the Relative Strength Index after pumping to extreme overbought territory.
- The bulls have breached and retested the 8-day exponential moving average.
- Invalidation of the bullish thesis is a breach below $270.
Binance Coin price could witness a continuation of the countertrend rally in the coming days. Key levels have been defined.
Binance Coin price back to $280
Binance Coin price witnessed a strong influx of bullish momentum during the third weekend of October. On October 24, a profit-taking consolidation brought the BNB price down to the halfway mark of the rally. Still, there is potential that BNB price will rally higher.
Binance Coin price auctions at $273.4 The bulls have successfully breached the 8-day exponential moving average (EMA) during the weekend and were rejected from the 21-day simple moving average (SMA). Now the bulls are testing the recently breached 8-day EMA as support. While the optimistic moving average signals occur, the Relative Strength Index hovers in the supportive territory of continuing the trend. It is worth noting that the weekend’s rally also breached extremely overbought territory, hinting that the bullish strength is genuine.
BNB/USDT 1-Hour Chart
CoinGlass' Long-Short ratio steepens the potential for a bullish scenario. On October 14, traders between $275.4 and $271.1 were heavily positioned to the downside. Market makers may build a cause for a challenge and potentially liquidate the highs scenario. An ideal liquidity zone to wipe out retail bears would be $279.
Invalidation of the bullish thesis could arise if the bears retag the $270 lows. A sellers’ frenzy could unfold in doing so, targeting $250 and below.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
