Binance Coin Price Ascends, Triggering a $2.3 Million Short Squeeze
The Binance Coin (BNB) has experienced a significant recovery in recent days, following a market-wide sell-off that saw Bitcoin’s price drop to $57,500. While other altcoins were also affected by the retracement, BNB showcased a strong rebound, with its price increasing from $385 to $528, a gain of 37%. Now the question is whether this recovery will continue if Bitcoin breaks above $70,000 on Monday.
BNB Price’s Steady Parabolic Growth
Since October 2023, the BNB price has been steadily rising in a parabolic fashion. The coin’s value has increased by 162% over the past five months, reaching its current trading price of $529. This upward trend can be seen as the formation of a rounding bottom pattern on the daily chart.
This chart pattern indicates a shift in sentiment from pessimism to optimism among investors. As selling pressure decreases and buying interest increases, there is potential for a long-term increase in the asset’s price.
Furthermore, the BNB price recently experienced an intraday gain of 8.5%, breaking out from the key resistance level at $507. This breakout provided traders with suitable support to push the price higher. In fact, data from the derivatives market reveals that short positions amounting to $2.3 million were liquidated during this bullish breakout on Binance.
If the BNB price manages to sustain above the $507 support level, buyers may drive a rally towards $5700 and eventually face resistance at the neckline level of $668. However, it is important to note that this recovery may not be a straight path, as periodic pullbacks are common for altcoins to gather strength for their bullish momentum.
Technical Indicators
- Bollinger Band: The ascending movement within the Bollinger Band indicator suggests that buyers currently have a strong influence on the BNB price.
- Exponential Moving Average (EMA): The 20-day and 50-day EMAs have been providing dynamic support to BNB prices for the past three months.
In summary, the Binance Coin has experienced a significant recovery, outperforming other altcoins in the market. The recent bullish breakout from the key resistance level at $507 has triggered a short squeeze, leading to the liquidation of $2.3 million worth of short positions on Binance. However, it is important to keep in mind that altcoin recoveries are not always linear, and periodic pullbacks are expected along the way. Traders should closely monitor Bitcoin’s price movement, as it may have an impact on the future direction of BNB.
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