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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Binance Coin labored in a downtrend as bears seized the initiative this week.
  • The bulls have some hope of halting further losses at the $220 mark. 

Binance Coin [BNB] initiated a downtrend on the lower timeframes after a market structure break on the H4 and lower charts. A move toward the next support level at $220 appeared likely with the evidence at hand.

How much are 1, 10, or 100 BNB worth today?

In an earlier report, it was highlighted that the $240 level was an important short-term support zone. BNB fell below this area, retested it as resistance, and continued its descent. A clear short-selling setup was not evident yet.

The failure of the trendline support showed bears have the upper hand

Source: BNB/USDT on TradingView

There was a bullish order block from the H4 timeframe at the $240 zone (cyan). A rising trendline support (yellow) that was respected over the past month was also present. The combination of these factors was not enough to stall the bears.

They were able to force losses that measured 4.6% within four days. The Relative Strength Index (RSI) on the six-hour chart above showed extreme bearish momentum. Furthermore, the On-Balance Volume (OBV) also slid lower over the past two days.

BNB might have formed a range (green) that extended from $220 to $257, with the mid-range mark at $239. The mid-range level has been important over the past month, reinforcing the validity of the plotted range.

Coinalyze data showed intense bearish sentiment in the market this week

Binance Coin [BNB] slips below $239, here's why $220 could be a place to catch a bounce

Source: Coinalyze

On 16 August BNB slid downward from $238 to $232, and the Open Interest (OI) spiked higher on that day. This showed bears were utterly dominant and short positions opened in large numbers. The spot Cumulative Volume Delta (CVD) was also in a continuous downtrend, signaling continued selling in the spot markets. Long liquidations pushed the prices lower.

Realistic or not, here’s BNB’s market cap in BTC’s terms

Bulls can look to buy a retest of the range lows, with a relatively liberal stop-loss set below $211. While it offers a good risk-to-reward trade, prudent traders can wait for a lower timeframe bullish market structure to develop before looking for buying opportunities.

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