Binance Coin (BNB) is showing signs of a potential relief bounce after a sharp corrective phase, with its price reacting strongly at the critical 0.618 Fibonacci retracement level. The cryptocurrency recently traded near $862, following a volatile stretch that saw it decline 2.7% over the past day and roughly 9.3% over the week. This sell-off dragged the price from the mid-$900s to the low-$860s before buyers intervened.
Technical indicators paint a mixed picture. The 4-hour chart revealed a clear breakdown from recent highs, with volume spiking during the sell-off, indicating aggressive distribution. The subsequent bounce occurred on lighter volume, suggesting sellers may still hold control in the near term. BNB continues to trade below both its 50-day Simple Moving Average (SMA) at ~$884 and its 200-day SMA at ~$897, which now act as overhead resistance.
The key development is the formation of a bullish engulfing candle at the 0.618 Fibonacci support, a classic signal of short-term buyer strength returning at a major technical level. Analysts note this move was preceded by a liquidity sweep, where price briefly pushed below recent swing lows to trigger stop-losses before reversing higher—a pattern often associated with local bottoms.
Market sentiment remains cautious, with the Fear & Greed Index reading 25 (Extreme Fear). The 14-day Relative Strength Index (RSI) sits at a neutral ~48, suggesting selling pressure has cooled but not yet shifted momentum. The immediate focus for traders is whether BNB can hold above this Fibonacci support zone. If it does, the path opens for a relief bounce toward the next significant resistance level near $950. A failure to hold support, however, would invalidate the higher-low setup and expose the price to renewed downside volatility, with the mid-$850s as the next focal point.
