
Rising Wedge Formation Indicates Bearish Outlook
According to The Crypto Titan’s analysis, BNB’s weekly chart reveals a rising wedge pattern, which is typically associated with potential bearish reversals. This pattern consists of higher highs and higher lows within converging trendlines, signaling that the bullish momentum is weakening as the price narrows into a tighter range.
Currently, BNB has broken out of the wedge at $666.30, placing it in a critical zone near the lower boundary of the wedge. If the price breaks below this level, the bearish trend could strengthen, with the next potential support level appearing around $563.
On the other hand, key resistance levels are at:
- $740: The upper wedge line of the trend.
- $800: A key psychological resistance point.
BNB Price Bearish Momentum and Breakdown Scenarios
The narrowing wedge formation is a sign of potential loss in bullish momentum. Analysts are suggesting a possible sell position if BNB’s price drops between $665 and $670, the lower boundary of the wedge. A breakdown below this zone would likely accelerate the price decline, with the next target set at $563.
If BNB falls through this critical zone, the price may face further downward pressure. Analysts also suggest that the price may retest the lower boundary as resistance before continuing its downward trajectory.
Futures Market Reflects Mixed Sentiment
Data from Glassnode reveals a decline in BNB Futures open interest, which has decreased after reaching peak levels. This reduction, combined with a drop in the total value locked in Futures contracts, suggests that activity in the derivatives market has slowed.
Long liquidations were notably significant during December, reaching a peak of $9.79 million. However, in recent weeks, the liquidation balance between longs and shorts has evened out, indicating a shift toward a more neutral market position.
Outlook and Market Position
The rising wedge pattern continues to signal potential bearish tendencies in BNB’s technical setup. With mixed sentiment in the market, traders are uncertain about the next move. Reduced leverage in the derivatives market and the normalization of long and short liquidations have contributed to this uncertain atmosphere.
The key price levels to watch are:
- $665 to $670: A breakdown below this level could signal a deeper decline.
- $740: If BNB reclaims this resistance, it could reverse the current bearish bias.
In conclusion, while the technical setup suggests bearish pressure, the market remains uncertain, and traders will be closely watching the key price levels to determine BNB’s next move.