BNB Bullish Crossover: Can It Reach $700 Soon?

author

Published: September 27, 2024

BNB has recorded a bullish crossover following the 50-day MA surpassing the 100-day MA.
Should BNB surpass $600 with robust buying volumes, it may trigger a rally towards $700.

Binance Coin [BNB] has been closely following Bitcoin [BTC] in the past month. Like numerous altcoins, BNB has made a noteworthy recovery, showcasing a 30-day increase of 9%.

At the time of writing, BNB is trading at $595 after experiencing another rejection above the $600 mark. As BNB prepares for another attempt to breach this resistance, several bullish indicators are emerging, suggesting a potential uptrend.

BNB price forecast

BNB’s inability to exceed $600 indicates that profit-taking by sellers is occurring at this level.

Nonetheless, the emergence of a bullish crossover on the daily chart, following the 50-day Exponential Moving Average (EMA) crossing above the 100-day EMA, suggests that a breakout may be imminent.

This crossover generally indicates that short-term momentum is strengthening in relation to long-term momentum.

Such a development could entice buyers seeking a buying signal for BNB, potentially driving prices higher.

Source: TradingView

Increasing buying activity is already reflected in the volume histogram bars, demonstrating that purchasing volumes are outpacing selling volumes.

Additionally, the Chaikin Money Flow is showing a reading of 0.30, indicating that buyers are active. The CMF has also experienced a significant upward movement, suggesting that buying momentum remains strong.

Should these elevated buying volumes persist, BNB could be on the brink of a significant rally, potentially breaking through the 100% Fibonacci level ($700).

This surge in buying activity is expected this week due to the release of former Binance CEO Changpeng Zhao from prison on September 29.

Ahead of this event, BNB may continue to mirror the movements of the broader market. Erratic price fluctuations could lead to a retest of support at the 0.786 Fib level ($585).

Liquidation data reveals THIS

Analyzing the BNB liquidity heatmap on Hyblock Capital shows a surge of liquidation levels between $600 and $630.

(Source: Hyblock Capital)

If the BNB price begins to climb and nears these liquidation levels, this could trigger a short squeeze, forcing short traders to cover their positions by purchasing BNB. Such a scenario may lead to additional gains.

The presence of these potential liquidations also indicates that the $600-$630 range serves as a substantial resistance zone. Thus, should BNB successfully break through these levels, it might indicate a significant shift in market sentiment towards the bulls.

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

In the Futures market, BNB has sustained interest, with Open Interest reported at $620M as per Coinglass.

This figure, however, has seen a slight decline after reaching a three-month peak of $677M on September 24.