In a recent series of tweets, market analyst Skew Δ provided insights into the current situation surrounding the cryptocurrency BNB (Binance Coin). According to the analyst’s observations, spot buyers of BNB have been instrumental in driving the coin’s value higher, particularly toward a crucial price level of $220. This move is seen as significant, as reclaiming this price area could potentially indicate a surge in confidence among Binance Coin investors.
However, the market’s funding aspect remains relatively neutral when viewed in aggregate terms. Skew Δ also highlighted developments in its trading activity on the Binance exchange. Notably, the data reveals a substantial decrease in BNB Binance Open Interest and Delta Shorts, coinciding with the coin’s recovery to the $220 mark.
This reduction in short positions was accompanied by spikes in the perpetual delta (bid), suggesting that short sellers might have been experiencing a squeeze in their positions. A key point of interest lies in the growing perp premium, which aligns with the concept of a significant short squeeze.
Examining the spot market for BNB on Binance, it becomes evident that a considerable amount of BNB was sold to buyers who were willing to purchase at higher prices, particularly around the $220 level. It aligns with logical expectations during a short squeeze scenario.
The current demand for Binance Coin at the $200 level contrasts with the available supply at $240 and beyond. To confirm the strength of the market, BNB needs to reclaim and hold the $220 price level successfully.
Iceberg Buyer Alert: BNB’s $220.40 Bids Filled
In a separate tweet, Skew Δ provided further insights into the situation. An “Iceberg buyer” emerged in the BNB Binance spot market at a price of $220.40. This buyer’s significant bids were filled substantially, signaling strong interest at this price level. However, the analyst expressed cautiousness, suggesting that a sudden reversal in price from this point might not be ideal.
Nevertheless, these updates from Skew Δ provide a comprehensive overview of the recent dynamics surrounding BNB’s market performance, with particular emphasis on the interaction between spot buyers, short squeezes, and crucial price levels.
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