• Binance Coin [BNB] fell beneath the $305 mark at the time of writing and had a short-term bearish bias.
• Bitcoin [BTC] oscillated from $23.1k to $23.9k on Monday, marking these as near-term support and resistance levels.
• Hidden divergences showed a continuation of the near-term downtrend with bearish sentiment present in the Open Interest and funding rate.
Overview
This article assesses the current market structure for Binance Coin [BNB] and Bitcoin [BTC]. It highlights that, at press time, BNB had a short-term bearish bias while BTC oscillated between two near-term support and resistance levels. Additionally, hidden divergences have indicated a continuation of the near-term downtrend with bearish sentiment present in the Open Interest and funding rate.
Analysis of BNB’s Market Structure
At 13 February, Binance Coin fell sharply onto the $287 support level. In days that followed, bulls were quick to rally pushing prices as high as $327.8 on 16 February before forming a series of lower highs which saw it fall beneath the key $305 support level – suggesting another drop was imminent beneath $300. This was further confirmed by a hidden bearish divergence (yellow) seen with its RSI which stood at 44 at press time showing neutral to weak bearish momentum; however there is an H4 bullish order block seen in the $286-$294 area should buyers seek favorable conditions before buying into this asset again. Despite recent losses, an overall rise in A/D line has shown steady buying pressure so far suggesting there may be scope for bullish reversal in days ahead.
Bearish Sentiment Present
Open Interest has declined alongside prices denoting long positions are discouraged – this is further evidenced by its negative funding rate which suggests sellers are dominant currently – yet spot CVD shows buying volume indicating further losses before reversal could still be likely.
Conclusion
Overall current market structure appears bearish for both assets but buyers remain active as demonstrated by rising A/D line and spot CVD figures – traders must exercise patience and caution when considering entry points waiting for favorable reaction from key zones such as H4 bullish order block or near term supports or resistances before opening new positions whilst those looking to close out existing ones can seek profits around such zones too
