Binance Coin [BNB] bulls succeeded in reclaiming a key Moving Average as support. On Wednesday, the 25th of February, BNB rallied by 7.85% and reclaimed the $600 psychological level.
On the 1-day timeframe, the 20-DMA at $618.75 (orange) has been flipped to support. Wednesday’s move saw the imbalance and supply zone (white) from $602-$610 overcome.
This bullish engulfing candle hinted at short-term bullishness for BNB. While the 1-day structure remains bearish, traders should beware of a potential short squeeze.
The trading opportunities for BNB
Swing traders and long-term investors must remember that the long-term trend of BNB remained bearish. The price was testing the $601 swing low that kicked off the strong rally in the second half of 2025.
There was an argument to be made that buying BNB here was a deep discount.
At the same time, some context with relation to Bitcoin [BTC] is required. The current Bitcoin drawdown might not have ended, despite the bounce to $69k in recent days. There may be many more months for the market bottom to form.
The short-term BNB bullishness
The 4-hour chart also retained a bearish structure, but there was some short-term hope. The $640 bearish order block from earlier in February has been repeatedly tested as resistance. While the OBV did not make new highs, the repeated tests of the local resistance level hinted at bullish intent.
It is possible that a high-volume breakout above the local resistance zone was brewing. In this scenario, a breakout and retest of $640 would likely offer a buying opportunity targeting $680 and $730.
The 1-month liquidation heatmap agreed with the bullish breakout idea. There was a dense cluster of short liquidations from $643-$680 that could pull prices higher.
Further north, the next liquidation cluster was around $800.
It appeared likely that BNB reclaiming the 20DMA was not the start of a bullish recovery but rather the start of a liquidation hunt. Unless Bitcoin breaches $70k and $73k, BNB traders and investors should remain cautious about bullish short-term price action.
Final Summary
- The recent move above $600 could be the beginning of a short-term rally to $680.
- This move would likely not be a bullish recovery but a hunt for liquidation levels before a bearish reversal follows.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
