BNB Price Hits Another All-Time High, But Correction Risk Looms

BNB has extended its uptrend with a sharp 7% rally over the past 24 hours, pushing the altcoin to a new all-time high. 

During the intraday peak, BNB hit $1,083 and formed a new all-time high (ATH) before slightly retracing. Despite this milestone, many traders remain cautious, with expectations of a near-term dip.

BNB Traders Vie For Decline

Funding rates have dropped to a two-month low, signaling a notable shift in trader behavior. This decline reflects an increase in short contracts, showing that market participants are betting against BNB despite its record-breaking rally. Short positioning indicates skepticism about the sustainability of the recent surge.

The bearish tilt highlights a broader sentiment of profit-taking at current levels. Traders appear to be positioning for a correction, expecting BNB’s price to retreat toward a key psychological level. This growing bearish outlook suggests the market may be preparing for heightened volatility in the days ahead.

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On the macro front, the liquidation map reveals significant risks for bullish traders. If bearish momentum pushes BNB down to $1,000, an estimated $61 million in long contracts could be wiped out.

This potential wave of liquidations could also dampen confidence among bullish participants. Fear of forced liquidations at $1,000 may encourage profit-taking before the market reaches that threshold, creating additional downward pressure.

BNB Price Forms New High

At press time, BNB is trading at $1,052 after securing its new ATH of $1,083 earlier today. The altcoin’s consistent gains have kept momentum alive, but the market now faces a critical inflection point. Support and resistance levels will dictate the next move.

If bearish sentiment strengthens, the BNB price could retrace to $1,000. Such a dip would trigger large-scale liquidations and also reset bullish momentum, delaying further rallies.

However, if bullish pressure persists, BNB could defy expectations and continue its ascent. A clean break above $1,083 would open the path toward $1,100 and beyond. Sustained momentum from investors could invalidate bearish projections and push the altcoin to new record highs.