Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.Despite seller dominance in the market, a bounce toward $220 was a possibility.
has a bearish outlook on the price charts after the recent retest of the $205 level as support. This was the second test of the $205 level in the past three weeks.The previous one occurred on 22 August and saw Binance Coin bounce higher in search of liquidity. Hence, despite being a lower timeframe structural break, it did not signal a bullish trend in progress. Could the same scenario materialize once more?At the time of writing, the market structure of Binance Coin was bearish.
However, the red box at $225 highlighted an H4 bearish order block, a zone of resistance. BNB was able to climb higher, but unable to establish an uptrend. This suggested a northward liquidity hunt and could repeat in the coming days. The $220 level has not been tested in September and was a level that previously served as support in June. Hence, it is likely that there are lots of sell orders in this zone. A deviation above $220 to fool enthusiastic bears and catch the early short sellers offside was a possibility.
On the other hand, a move below $205 would be a sign of significant bearish pressure. It would likely be followed by a drop to the next support level at $183.