Binance Coin [BNB] Price Prediction 2023 — Will BNB Recover?

Binance Coin [BNB] has a firmly bearish sentiment in the short-term. This is unsurprising given the swift losses in the past 72 hours.

Binance Coin [BNB] encountered a bearish week as a result of the losses in the U.S. market. This led to a 15.6% decrease in the past 72 hours.

Having dipped below the $600 resistance zone, BNB faced selling pressure and was trading around the $580 level. Due to the recent losses and bearish sentiment, a quick recovery seemed unlikely.

BNB sinks below 200-day Moving Average After breaching the $649 level on the 2nd of February, the market structure turned bearish. Following this breach, BNB dropped another 23% to reach $500 before bouncing to $580. This bounce from the local lows was quick, but not accompanied by heavy demand.

The OBV has been trending down since mid-December, indicating increased selling pressure. This trend was observed for several large-cap altcoins. The market-wide bearishness was not conducive to a quick recovery.

Investors could wait a few days to observe potential range formation. Accumulation signals could guide buyers on whether bidding for Binance Coin would be profitable in the medium to long term.

Another drop below $550 seemed likely in the short-term. The price naturally drifted toward the local lows at $500, though it was unclear if it would reach that level again.

The build-up of liquidity around $525-$540 over the past ten hours suggested a dip to this area was possible. It could be followed by a bullish reversal, targeting the next magnetic zone at $620.

The Open Interest-Weighted Funding Rate across exchanges dived into negative territory once again. It had done so on the 8th and the 13th of January.

On those days, the price had dipped 3-5% before bouncing higher.

The influx of late short-sellers could form the liquidity overhead that would attract prices. This volatility offered lower timeframe traders plenty of opportunities but would present tricky and volatile conditions for swing traders.

Therefore, allowing another day or two for liquidity pockets to be established before trading them could be a good idea for some market participants.