- Binance Coin (BNB) has been trading within a range for the past two months, presenting opportunities for traders.
- Similarities between the current consolidation phase and the one in early 2024 could suggest a potential upward breakout.
- Key levels within the range and the liquidation heatmap indicate significant areas of interest for swing traders.
With Binance Coin (BNB) trading within a range for the past two months, traders are eyeing potential opportunities. The current consolidation phase mirrors that of early 2024, suggesting a possible upward breakout.
BNB’s Consolidation Phase
Binance Coin [BNB] has been trading within a range for the past two months. Two levels within this range have been of particular interest to swing traders. Despite the negative sentiment behind the exchange token, technical indicators and price action suggest that an upward breakout is more likely than a downward move in the coming weeks.
January Consolidation and Future Predictions
The range formation of the past two months, extending from $506 to $633, is similar to the consolidation phase earlier in 2024. During the end of the consolidation, volume was minimal, but a breakout past the resistance zone boosted the volume. At present, the volume is small compared to March, but the price is above the mid-range level at $571. This, along with a positive CMF, indicates significant capital inflows and buying pressure. If Bitcoin [BTC] recovers its uptrend, it could potentially drive BNB to rally higher.
Liquidity Pockets and Price Action
The $619 and $535 levels are key from a price action perspective. The liquidation heatmap of the past month also indicates that the $615-$625 region is a magnetic zone for the price. Smaller pockets of liquidity at $570 and $535 could be areas where BNB could drop before a bullish reversal.
Conclusion
While BNB has been trading within a range for the past two months, the similarities with the consolidation phase of early 2024 suggest a potential upward breakout. Traders should keep an eye on key levels within the range and the liquidation heatmap for potential trading opportunities.
