- Binance Coin price leaves uncollected liquidity to the downside, hinting at a further crash.
- A breakdown of the $253 to $308 demand zone will allow bears to sweep the $222 level for liquidity.
- A recovery above the range low at $336 will invalidate the bearish thesis for BNB.
Binance Coin price is bouncing off a stable demand zone that has, for the time being, cauterized its bleed. However, the untapped liquidity to the downside could cause bears to push through this support area.
Binance Coin price remains indecisive
Binance Coin price has crashed roughly 31% over the last five days and is currently trading at $276. The downtrend has stopped for now, as BNB dips into the $253 to $308 demand zone. As buyers struggle to keep up with the overall selling pressure, a breakdown is likely.
If Binance Coin price produces a three-day candlestick close below $253, it will signal a breakout and trigger a 13% crash to the immediate support level at $222. The price action will likely sweep below this barrier to collect liquidity.
While there might be some respite for bears here, this downswing could extend up to the next barrier at $182. In total, this crash would constitute a 34% loss from the current position.
Considering that the Bitcoin price has not collected liquidity resting below the January 2021 lows, there is a high chance for the bearish outlook to play out.
BNB/USDT 3-day chart
On the other hand, if Binance Coin price manages to bounce off the $253 to $308 demand zone, things could be different. A recovery rally that produces a three-day candlestick close above $336 will invalidate the bearish thesis.
In such a case, Binance Coin price could run high to collect liquidity resting above the equal highs at $413 and $432, respectively.
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