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Binance Coin (BNB) headed into the last days of March with a mildly strong bullish candle on the four-hour timeframe that shot it back into the $600 price zone.
Earlier in March, BNB had cracked the $600 price zone but found the $640 resistance level one step too far, leading to a sub-$500 retracement move.
However, BNB rebounded and is set to make another attempt to scale the selling pressure at $640. Will buyers be successful this time? Here is our potential outlook.
Buyers Bid for Key Resistance Level Again
The daily timeframe highlighted BNB’s strong impulse move with price making a series of higher lows, climbing rapidly from $300 to over $600 within six weeks.
Zooming into the four-hour timeframe highlighted the strong buying pressure at the $525 support level which served as a strong catalyst for the continuation of the upward price movement.
In addition, BNB’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) have remained largely positive over the period of the bullish impulse move. This signaled at strong capital inflows sustaining the buying pressure.
Despite the bullish price action, the $640 resistance level has been a major hurdle that buyers haven’t been able to cross. But this metric in the futures market hinted bulls might be successful on the third try after failing at their two previous attempts.
Longs in the Majority
A look at the long/short ratio on Coinalyze showed that over 66% of market participants leaned toward the continuation of BNB’s bullish trend.
Despite the tendency of the futures market to go against existing trend on the spots market, the underlying indicators on the spot market firmly point to an extension of the bullish move.
Thus, if buyers break the selling resistance at $640, BNB could set a new all-time high (ATH) in the coming weeks. However, if sellers prevail again, BNB could range between $525 and $640 before another bullish impulse move materializes.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
