BNB technical analysis: Will BNB break $622 for a push to $720?

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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Market context

We had that blue range box on BNB between $500 and $622. The key thing we've been focusing on is the head and shoulders pattern formed in candlestick form. The left shoulder was printed on Monday, 1st July. The neckline followed on Monday, 22nd July, with the head forming on 5th August via a weekly wick candlestick. The neckline was respected on 19th August, and the right shoulder was accurately tested on 2nd September.

Looking back, this neckline acts as a box resistance range, especially when considering the March-April period, when we saw numerous wicks, indicating significant selling pressure in that region. A breakout above this level would be crucial, signalling that buyers are stepping in and are willing to hold rather than sell at these levels.

Market mechanics

• On 9th October, we saw a massive ramp in the funding rate, heavily skewed to the negative, meaning sellers were paying a premium to be short. This has since rebalanced, and open interest has been relatively flat since June, with no major spikes.

This could suggest a bit of a change in sentiment from people willing to risk more to be short at this price region to back to a balanced market.

• The liquidation heat map shows a significant build-up of short positions above $600, which could be squeezed as we push upwards. There's even more liquidation potential just above $620, making this range particularly interesting for a potential squeeze.

Playbook

• If BNB can break and close strong above $622 and we see continued buying, then we'll be looking at a $622-$720 range. The wick from 3rd June correlates nicely to Bitcoin's push-up to approach its all-time highs.
• Currently, Bitcoin is rampaging at $68,000, back towards its 2021 all-time highs, which could carry BNB above $622. How long it stays there is uncertain, as there has been significant selling pressure between $622 and $720, much like Bitcoin's own struggles at its key levels.

Key levels

• $500-$622 (current range)
• $620-$720 (potential target after a breakout)
• Watch for short liquidations, and price squeezes above $600 and $620.

Risk management

We are at the top of a very key range, which may result in selling pressure. This is not the place to ape into any leverage long positions. Patience is key here. For those looking to accumulate, a DCA approach is good play in general. While BNB is approaching all-time highs, it may go into price discovery alongside Bitcoin and other majors. While not part of our CPRO picks, BNB has performed well this cycle.

Cryptonary's take

BNB is on the brink of a significant breakout, especially with the support of Bitcoin's strong momentum. If it breaks through the $622 level, there's a solid chance it will move into the $620-$720 range and possibly into price discovery mode. While the fundamentals and market structure are strong, it's important to stay cautious, given the selling pressure historically seen around this level. DCA for spot accumulation looks ideal, but be patient with leverage positions as we sit at the top of a key range. Momentum is on BNB's side, but precision is key in managing risk.