Traders bet against BNB: Is a price reversal likely now?

    BNB traders were betting against the token.
    BNB set to revert recent price declines, based on technical analysis.

As a seasoned crypto investor who has weathered numerous market cycles, I find myself cautiously optimistic about Binance Coin (BNB) at this juncture. While the bearish sentiment among traders and the short imbalance highlighted by Hyblock Capital are certainly concerning, the technical analysis suggests a different story.


Binance Coin (BNB) continues to rank among the leading digital currencies, as its originating platform, Binance exchange, holds significant influence in the global crypto market.

Given the current incarceration of one of its founders, Changpeng Zhao (CZ), it’s worth examining Binance Coin’s (BNB) recent market trends more closely, considering both technical analysis and on-chain data.

According to the latest news from Hyblock Capital, there seems to be an excess of traders who are predicting that Binance Coin will decrease in value, causing a negative outlook and possibly driving the price lower due to this overabundance of short positions.

It seems that investors are forecasting a continued drop in the price of BNB, given their shift towards fewer long investment positions.

BNB consolidating in ascending triangle 

However, despite this sentiment, the BNB/USDT pair chart indicates a more positive outlook.

The behavior of BNB suggests optimistic trends, noticeably on the weekly graph, where it has shown a steady upward trajectory starting from early 2021. This is indicated by repeated instances of both higher peaks and higher troughs, signifying a strengthening bull market.

The rising triangular formation, where $450 acts as a crucial base, hints that BNB might keep moving upward.

In simpler terms, the tightening of prices within this triangle suggests a potential upward price surge might occur. However, investors should exercise carefulness since the price is approaching its record highs.

Traders bet against BNB: Is a price reversal likely now?

The contrast between the bullish chart and the bearish cumulative long-short delta highlights a mixed sentiment, but BNB’s price may still move higher.

Altcoins start to rise on daily chart

With altcoins climbing up their daily graphs, Binance Coin (BNB) looks set to capitalize on this bullish momentum. Given the wider altcoin market’s indications of revival, an uptick in the value of BNB could be imminent.

Just recently, there’s been a burst out of a 9-month descending triangle formation in the altcoin sector, hinting at an imminent rise. It appears that Binance Coin (BNB) might also experience this uptick.

In simple terms, the surge in altcoins along with enhanced market conditions might lead to a rise in Binance Coin’s (BNB) price within the next few weeks or months.

Traders bet against BNB: Is a price reversal likely now?

Holding time of transacted coins

According to on-chain analysis, there’s an indication that BNB might be experiencing a temporary downturn, but it could bounce back soon.

2024 has seen an upward trend in the duration that Binance USD (BUSD) coins held on the BNB Chain remain stationary, indicating that investors are choosing to keep their assets for a prolonged period. This prolonged holding could imply confidence in the possible future price growth of BNB.

Traders bet against BNB: Is a price reversal likely now?

Crowd vs smart money sentiment

Lastly, sentiment analysis indicates that both the crowd and smart money are bullish on BNB coin.

This optimism contrasts with the short imbalance noted earlier, providing further evidence that BNB could experience higher prices soon.

Traders bet against BNB: Is a price reversal likely now?

Read Binance Coin’s [BNB] Price Prediction 2024–2025

Furthermore, there’s a noticeable surge in the use of the BNB Chain, notably as more memecoins are being introduced onto its platform.

Given the ongoing alignment of larger economic forces, and Bitcoin possibly spearheading a broader market rebound, it’s plausible that the value of BNB could experience a substantial increase in the near future.

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2024-09-10 09:44