BNB Price Prediction: Can It Reach $1,000 Again This December?

Binance Coin (BNB) has recently tested the $827 support level, an area that demonstrated significant demand back in August and September. This level has once again proven its importance. The decline below $1,000 is primarily attributed to a decrease in on-chain activity and DEX trading volume. However, with recent changes in Binance's leadership, there could be a potential shift from hyper-growth to a more balanced platform. On the other hand, the ongoing lawsuit in North Dakota may pose challenges for both Binance and BNB prices.

Key Takeaways:

BNB has tested $827 support, showing initial signs of resilience.
A bearish trend persists despite internal bullish shifts.
Key resistance lies at $950 and a psychological barrier at $1,000.
Traders may face short-selling opportunities if the price approaches $950-$1,000.

BNB price prediction - Will it conquer $1000 again in December?

Short-Term Optimism Sparks from Trend Break

BNB 1-day Chart

Source: BNB/USDT on TradingView

On the daily chart, the overall trend remains bearish, but an internal shift suggests a bullish potential. This occurred after the breach of the lower high set at $906.5 on Wednesday, December 3rd. Resistance at the $950 level is significant, as it was a key battleground in November, making it challenging to surpass.

The Directional Movement Index (DMI) indicates a robust bearish trend, with both the Average Directional Index (ADX) and -DI above 20. Conversely, the Chaikin Money Flow (CMF) is oscillating around neutral values, showing no sustained capital flow in either direction.

BNB Liquidation Map

Source: CoinGlass

The Liquidation Map reveals a concentration of high-leverage liquidations within the $910-$920 range, likely to be tested in the coming hours. Higher up, near the $950 area, additional high-leverage liquidations are present. With more cumulative short liquidations compared to long positions, there is potential for BNB to push higher, forcing a squeeze on short positions before continuing its downtrend.

What BNB Bulls Should Keep an Eye On…

A breakthrough above $1,000 serves as a crucial psychological milestone. A daily close above this level signals acceptance of this price point. Specifically, the swing high of $1,019 from November needs to be breached to confirm a reversal into an uptrend.

Trader Actions: Prepare for a Short Squeeze

AMBCrypto highlights that the bearish momentum remains strong. The lack of buying pressure evident in the CMF, along with low trading volumes, reinforces the argument that the current rally is merely a bounce. A move into the $950-$1,000 range will likely meet resistance and present opportunities for short-selling.

Final Thoughts

Disclaimer: The insights shared in this article do not constitute financial, investment, or trading advice and reflect only the writer’s perspective.