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- Binance Coin price digs into the twelve-hour demand zone, extending from $282.73 to $257.74.
- A retest of the $274.09 support level inside the demand zone could catalyze a 12% ascent to $310.40.
- A daily candlestick close below the demand zone’s lower limit at $257.74 will invalidate the bullish thesis for BNB.
Binance Coin price created a bullish structure shift in the second week of September, which is currently being tested. A resurgence of buyers coupled with a spike in bullish momentum is required for BNB to see its next leg-up.
Binance Coin price teases bears
Binance Coin price has been bouncing off the $274.09 support level since August 2. Although BNB slipped below the said barrier on September 6, a subsequent recovery pushed BNB up by 15% over the next three days.
This move was pivotal in two ways.
- It caused BNB to flip the $274.09 hurdle into a support floor.
- It created a bullish market structure break, i.e., BNB set up a higher high at $298.48 relative to the August 30 swing high at $291.94.
These developments signal an incoming rally and a potential start of an uptrend. To add credence to this outlook, BNB confirmed the formation of the $282.73 to $257.74 demand zone.
As discussed in the previous article, the pullback is here as BNB currently hovers inside the demand zone. Investors can open a long position here and expect BNB to trigger a 12% run-up to collect the buy-stop liquidity resting above the swing highs at $307.86 and $310.40.
BNB/USDT 12-hour chart
While the bullish outlook makes logical sense, investors should note that the market has been bearish since late 2021. In such a case, a spike in selling pressure should not come as a surprise. If Binance Coin price produces a daily candlestick close below $257.74, it will invalidate the aforementioned demand zone and also the bullish thesis for BNB by producing a lower low.
Such a development could see BNB drop lower and fill the imbalance that extends from $257.74 to $245.01. If sellers drive this move home, Binance Coin price could aim to collect the sell-stop liquidity resting below the $239.40 and $233.71 swing lows.
Note:
The video attached below talks about Bitcoin price and its potential outlook, which could influence Binance Coin price.