- Weekly Bullish Momentum: BNB maintains a strong bullish structure after setting a new all-time high (ATH)
- Daily Imbalance Zones: Price likely to react to demand zones while keeping an eye on liquidity below
- Short-Term Uncertainty: H4 and H1 charts show mixed signals with liquidity traps both above and below
If you’re tracking Binance Coin (BNB), its recent price action offers an intriguing study of market structure and liquidity. Here’s an analysis from the weekly to the hourly timeframes, providing insights into potential scenarios.
Weekly Timeframe: Bullish Structure in Place
The weekly chart paints a promising picture for BNB, showcasing a bullish market structure that recently set a new all-time high (ATH).
This indicates strong underlying momentum, but the story doesn’t end there.
Daily Timeframe: Demand Zone and Imbalance
Zooming into the daily timeframe, we notice an interesting demand zone that left behind an imbalance.
What Is an Imbalance?
An imbalance occurs when there’s an uneven distribution of buy and sell orders, creating a gap in the price chart. These zones often act as magnets, as the price tends to revisit them to “fill” the gap before continuing its trend.
While a reaction to this zone is likely, it’s essential to keep an eye on the liquidity below.
This could signal a deeper retracement, potentially reaching a more profound demand zone before resuming the upward trend.
H4 Timeframe: Supply Zone Reaction and Liquidity Grab
On the H4 timeframe, the price has already reacted to a key supply zone.
Notably, it left liquidity nearby, which may act as a target before any significant upward move. If the price aims to rise, it might first take out this liquidity.
H1 Timeframe: Liquidity Above and Below
Finally, on the H1 timeframe, the situation becomes more nuanced. The price has also left liquidity above, hinting at the possibility of a short-term upward move. However, this could just as likely be followed by a dip to grab liquidity below.
Possible Scenarios
- Bullish Scenario: The price may grab liquidity below before rallying upward to continue the larger bullish trend.
- Bearish Scenario: The price might head upward first, taking liquidity above, before a deeper retracement to the lower demand zones.
Final Thoughts
As always, the market’s next move remains uncertain, and price behavior can defy expectations. These scenarios highlight possibilities, not certainties.
Stay tuned to Bitcoinsensus for daily insights on BNB, BTC, ETH, XRP, SOL, and more. Remember, this analysis is for informational purposes only and should not be considered financial advice.
