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Binance Coin Price Prediction: Buyers return to the market as support holds

Binance Coin (BNBUSD) has bounced back 18% from last week’s sell-off as confidence returns to the crypto markets.

The Binance coin price has recovered over the last four trading sessions led higher by stability in Bitcoin (BTCUSD) and Ethereum’s (ETH/USD) charge to new all-time highs.

In my report dated 25th April, I suggested that Binance Coin price may have further to fall. luckily for all you bulls out there, I was wrong. Just as a broken clock is right twice a day, even the most ardent of market followers sometimes get it wrong.

In my defense, I had stated that should the Binance coin price close below $480, it would likely signal a further depreciation. The $480 level held on a closing basis (intraday low $477.40) and has since rallied some 20% to $565.

Is it all good news?

Whilst the pick-up in prices has cheered the bulls, a quick look below the surface suggests price volatility may be here to stay.

Data from IntoTheBlock.com shows that 33% of the coin’s long holders entered the market sometime in the last month.

The highest Volume day over that period was the 12th of April. the same day Binance coin traded to an all-time high of $638.40. The same data suggests only 17% of holders are showing a profit at the current level, vs. 78% who are breakeven at current valuations.

Using the data, we can assume that given the high trading volume on April 12th, a lot of buying took place at the upper end of the recent price range. This concentration could leave the Binance coin price vulnerable to liquidation on any pullback in price.

Binance Coin Technical Outlook

The Binance coin price remains in a long-term uptrend, in place from the low of March 2021. Support was found at the lower band of this channel at $476.

Since then, a new short-term ascending trend line has been formed, providing support at $558. A Failure to hold that marker puts the 50 and 100-period moving averages into play ($537.80 and $534.50 respectively).

A descending trend line from the April 12th ATH now offers resistance at $591. Bulls may look to add length on a close above this price, targeting $611 (high of 21st April), followed by $638.40 (12th April ATH).

In this instance, a close back below the descending trend would negate the immediate bullish call.

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Binance Coin 4-hour Chart

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