Given the mounting selling pressure, can BNB bulls defend the $205 levels?

轻苑 · 2023-10-10T02:00:18.000Z

BNB support at $205 may collapse as selling pressure increases. Will the seller see the benefit? Binance Coin maintains a bearish market structure on both the upper and lower time frames. Seller dominance could lead to BNB falling below $205. Binance Coin [BNB] is hovering at the $205 range lows, with sellers looking to break out of that level with bullish resolve. BNB’s sideways movement throughout September continued into October as buyers failed to break above the $220 price level. Realistic or not, this is the market cap of BNB in BTC The most recent rejection at $220 on October 2 sent shares down 6.5%. This provides buyers with another opportunity to turn the $205 support into resistance.

BNB’s $205 support could collapse due to increasing selling pressure. Will sellers see gains?
Binance Coin maintains a bearish market structure on both the higher and lower timeframes.
The dominance of sellers could cause BNB to drop below $205.
Binance Coin [BNB] is hovering at range lows of $205, with sellers looking to break bullish resolve at that level. BNB’s sideways trend throughout September has continued into October as buyers have failed to break the $220 price level. Realistic or not, this is the market cap of BNB in ​​terms of BTC
The most recent rejection at $220 on Oct. 2 resulted in a 6.5% drop in the stock price. This provided buyers with another opportunity to turn the $205 support level into resistance.
Can the sellers finally break through the bullish defense of the $205 price level?
Despite the bearish market structure for BNB, the $205 support has been a stronghold for the bulls. Previously, this level has been tested three times, with the bulls emerging victorious each time.
However, key price levels tend to weaken after multiple retests as pending buy/sell orders at that level decrease with each retest.
Indicators on the chart suggest that sellers may find success on this retest. The relative strength index (RSI) remains below the neutral 50 level and is creeping towards oversold territory. This highlights continued selling pressure.
Likewise, BNB continued to see significant capital outflows, with the Chaikin Fund Flow (CMF), which reflects capital outflows, falling to -0.10.
If the $205 support is breached, BNB could move up to the weekly support of $190. This will offer sellers an 8% profit margin from the current price levels. Alternatively, if the bulls defend the $205 support again, the range formation in BNB could persist for a long time.
Shorts are the majority
Coinglass’s exchange long/short ratio shows sellers are positioning themselves to maximize shorting opportunities.
Shorts hold 52.12% of the open interest, and the spread between short and long positions is $6 million. This reflects a bearish bias, and there is a high probability that the BNB price will drop below $200.