Bears dominate BNB price movement
BNB, like the broader cryptocurrency market, has been caught in a downtrend during a week where many cryptocurrencies experienced their worst weekly decline since the FTX crash in November.
Bitcoin fell to $25,392 on Thursday afternoon, reaching its lowest point since mid-June, amid a wave of liquidations from leveraged positions, and analysts have linked the market downturn to macroeconomic concerns.
Some analysts believe a key bearish event contributing to the market’s struggles is speculation that SpaceX, led by Elon Musk, sold $373 million worth of Bitcoin. Although no evidence supports this claim, traders reacted by selling their assets, fearing further declines.
According to Coinglass, a blockchain analytics platform, over $834 million in long crypto positions were liquidated within 24 hours. When positions are liquidated, panic ensues, causing an influx of sell orders that can lead to oversupply and further price drops in the coming days.
Another negative factor for BNB is speculation that Binance, the largest cryptocurrency exchange, may be in trouble and could face a situation similar to FTX in 2022.
BNB serves as the exchange token of Binance, and some analysts believe this association may result in further price drops. Earlier this year, Binance was sued by the Securities and Exchange Commission (SEC) for alleged violations of securities laws, leading to billions of dollars being withdrawn from the platform.
Both Binance and its CEO, Changpeng Zhao, have been accused of 13 separate charges, including operating an unregistered securities exchange and profiting at the expense of investors.
In addition, Binance has faced multiple investigations from the SEC, with Zhao personally hit by a $1 billion lawsuit for allegedly paying celebrities to promote unregistered securities.
Despite Zhao’s assurances that Binance remains stable, the negative news continues to deter investors, and the current decline in BNB’s price suggests that bearish sentiment may dominate in the near term.
Furthermore, there has been a noticeable drop in the number of whale transactions, with large-scale transactions ($100,000 and above) decreasing. This typically indicates waning confidence in the short-term outlook for the asset.
If whales continue to divert their capital, BNB’s price could face even more significant declines in the upcoming weeks.
Concerns about a global recession and the aggressive monetary policies of central banks also pose risks to the cryptocurrency market, influencing the outlook for BNB. Given the number of uncertainties, investors are advised to take a defensive approach to their investments.
BNB Technische Analyse
Since August 14, 2023, BNB has fallen from $243.3 to $212.9, and its current price is $218. The coin may struggle to maintain a price above $200 in the coming days, and a breach of this level could signal a potential drop to $180.
Key Support & Resistance Levels for BNB
On the chart (from March 2023 onward), we highlight significant support and resistance levels to guide traders in forecasting price movements.
BNB remains under pressure, but if it rises above $250, the next resistance target could be $260. On the downside, the crucial support level is $200. If the price drops below this, it would trigger a “SELL” signal and open the path to $180.
Factors Supporting a Potential Rise in BNB Price
While BNB’s upside potential remains limited in the short term, if the price breaks through $250, the next resistance level could be $260. However, given the macroeconomic uncertainties and continued SEC pressure on Binance, investors should continue adopting a cautious approach.
Indicators Pointing to a Downfall of BNB
BNB is currently trading above $200, but a fall below this level could suggest a possible test of the $180 price level.
The downward pressure on BNB has been intensified by Bitcoin’s recent two-month low, and the volatility of the cryptocurrency market may prompt investors to sell BNB if further negative news emerges about Binance.
Binance has faced multiple legal challenges this year, with some analysts drawing parallels to the FTX exchange’s collapse in 2022, which could spell further troubles for BNB.
Expert Opinions on BNB’s Outlook
The cryptocurrency market continues to face downward pressure, with Bitcoin’s price dropping below $26,000. Analysts suggest that BNB could struggle to maintain its current price levels, with some linking the decline to broader macroeconomic concerns. Speculation regarding the sale of $373 million in Bitcoin by SpaceX is another bearish factor that has affected market sentiment.
According to blockchain analytics platform Coinglass, over $834 million in crypto long positions were liquidated in just 24 hours, and this flood of sell orders could lead to further price declines in the coming days. Moreover, the ongoing legal troubles faced by Binance add to the negative sentiment surrounding BNB.
Disclaimer: Cryptocurrencies are highly volatile and not suitable for everyone. Never invest money you cannot afford to lose. The information provided is for educational purposes only and should not be interpreted as financial or investment advice.
