Binance BNB Price Prediction for 2021 and Future Predictions | FXleadersBinance Coin (BNB) Price Prediction for 2021: BNB Starting to Turn Bullish Again - Forex News by FX Leaders

Binance Coin (BNB) Price Prediction for 2021: BNB Starting to Turn Bullish Again

Last updated on Sun, October 17, 2021 by
Arslan Butt • 6 min read
(%)
MARKETS TREND

Binance (BNB/USD) – Forecast Summary

Binance Forecast: H2 2021
Price: $500 – $600
Price drivers: China’s crackdown on cryptos, Crypto lawsuits, Binance exchange ban?
Binance Forecast: 1 Year
Price: $800 – $1,000
Price drivers: Crypto legal battles, Binance expansion, Crypto market sentiment
Binance Forecast: 3 Years
Price: $2,000 – $4,000
Price drivers: Global politics, Crypto policies, Crypto market sentiment, Binance expansion

 

Binance started the bullish rally a bit late compared to most of the market and as of October, it is looking bullish despite the ban on Binance in some countries and the warning others. They were weighing on BNB/USD initially but it seems like BNB users and traders are used to it now as buyers remain in control.

This crypto started climbing higher in February and kept making new highs, as it broke the $700 level in May according to some crypto brokers, while others placed the highs just below $700. BNB coin retreated lower, losing around 70% of the value during the crash. This was a bullish sign for the Binance Coin BNB and now after the crash, it still seems biased to the upside. This crypto has formed a bottom at $220 and despite certain powers trying to fight it in the UK, Japan and many other countries, it is still performing quite well, having climbed nearly $200 in a month.  

The Binance coin is a digital asset that was launched by the Binance exchange. Users can pay their Binance charges in BNB, and they receive discounts in return. These discounts are valid for four years, and they halve in value every year: 50% in the first year, 25% in the second, 12.5% in the third, and 6.25% during the fourth. The primary purpose of Binance Coin is the payment of fees, although it can also be spent in various online and physical stores worldwide. Apart from this, one can also invest BNB in Initial Coin Offerings (ICOs) that were founded as part of Binance’s Launchpad program.

So far, the world’s 4th-biggest cryptocurrency, Binance Coin (BNB), has a market capitalization of around $67.458 billion. Binance Coin (BNB) was initially formed on the Ethereum network in July 2017, making it a 3rd-generation cryptocurrency and ERC-20 token. 

Binance Coin was created by the popular Chinese cryptocurrency exchange, Binance. A portmanteau of ‘binary’ and ‘finance,’ Binance trades around $ 7,184,160,910 in a typical 24-hour period, and it is the world’s biggest crypto exchange. Its success could be attributed to its in-house matching engine that matches users looking to buy and sell the same asset. In this way, Binance is likely to go from strength to strength, but what about Binance Coin?

Recent Changes in the Binance BNB/USD Price 

 

PeriodChange ($)Change %
1 Month-129-36.9%
3 Months+7929.3%
6 Months+234+296%
1 Year+376+2,300%
Since 2018 +382+5,980%

 

Binance Live Chart

BNB/USD

BNB/USD – Factors that Impact the Price of Binance Coin

The following factors that impact the price of Binance Coin will help you to understand the market and predict periods of growth or decline, based on current events. The predictions are typically based on the principles of technical analysis. Despite this, we all need to understand different factors that can impact the price of a particular asset, which in turn enables us to make sensible investment decisions, based on changing events.

Many cryptocurrencies are currently not subject to any control by governments and central banks. However, if any changes were to occur in the coming years, this could impact the value of Binance Coin. The overall sentiment in the crypto market is the main driver behind all cryptos, and Binance has been rallying since the sentiment turned bullish toward the end of July 2021, following the bearish period. Let’s take a look at the three most vital factors that can affect the price of Binance Coin:

Supply and Demand:

The relationship between supply and demand could be considered a ‘catch-all’ factor that will always influence the price of Binance Coin. It is also worth noting that the relationship between supply and demand itself is dependent on many different factors. In simple words, the price of an asset will decrease if the supply exceeds the demand, and in turn, it will increase if the demand is greater than the supply. 

Supply of Binance Coin:

Binance is halving its coins and this event occurs roughly once a year. It cuts the reward for mining new blocks in half. Like Bitcoin, there is a maximum total supply of Binance Coin at 168,137,036 BNB coins, all of which have been dispensed. When it was first launched, the total supply was about 200 million; however, the Binance exchange intentionally destroys Binance Coin tokens over time.

This is normally done to control the supply of the cryptocurrency, which helps the Binance coin prices to stay firm. In simple words, Binance can manage the relationship between supply and demand by reducing the total supply, which has a positive impact on the price of Binance Coin. 

The Success of ICOs:

Another major factor that can influence the Binance Coin prices is the success of the ICOs that participate in Binance’s Launchpad scheme. If Binance supports launching a series of new popular cryptocurrencies, it means that Binance Coin users have more options for trading their tokens. This, in turn, underpins the demand for Binance Coin, as it creates more reason to trade on the Binance platform and therefore to own BNB. 

US Dollar & Binance Coin:

The prevalent surge in Binance Coin could also be attributed to the weaker US dollar, triggered by the progress towards agreeing on the next round of US fiscal stimulus, which has undermined the demand for safe-haven assets like the US dollar and contributed to the gains in Binance Coin.

Why Buy Binance Coin? The Qualities of BNB:

Let’s talk about some great reasons to buy Binance (BNB) Coin.

Affordability – Compared to other coins, like Bitcoin, BNB is favorable in terms of buying, as it is pretty affordable. You can easily trade BNB coins on the Binance platform.

Supply and Demand – The supply and demand determine the growth of a currency’s value in a digital exchange. Bitcoin grew in value, thanks to its 21 million supply cap. In the meantime, 99 million BNB coins are already in the market, and as its fame spreads, the supply will diminish, which in turn exerts a positive influence on the prices.

 Community trust – Binance Coin is seen as one of the most trusted coins in the market, thanks to the ease of operation and a high withdrawal limit of $ 30,000. Investors are gaining more confidence in BNB, due to the low level of security issues. 

 Growth – As the Binance platform grows with time, the BNB currency grows at the same rate. The infrastructure is as strong as Bitcoin’s protocol.

Technical Analysis – Is the Bullish Trend Resuming in BNB/USD? 

On the technical side of the market, Binance turned bullish early in 2021, as did most cryptocurrencies, although BNB was a bit late starting the bullish rally. We saw the first bullish wave which took the price above $200, where it placed a high at $220. March was mostly sideways for this crypto, but in April the bullish trend resumed again, pushing it to around $700. The crash came by the middle of May, which sent BNB/USD nearly $500 down. That means a 70% decline, although the 20 SMA (gray) held as support in the first attempt, despite being pierced initially. The price formed a doji candlestick above the 20 SMA on the weekly chart and BNB/USD bounced off that moving average the next week. But, the bearish momentum resumed again in the crypto market, as China and other countries increased the crackdown on cryptos. The price moved below the 20 weekly SMA again but the support and $220 held and in fact, Binance was making higher lowes during that bearish period, while many other cryptocurrencies continued to make lower lows. Now, this crypto is trying to turn bullish again and buyers already took out the 20 SMA, pushing above the $400 level as well. 

The 20 SMA is holding as support on the weeky chart

On the daily chart, the smaller moving averages, particularly the 20 simple Moving Average and the 50 SMA (yellow) were acting as support during the bullish trend of earlier this year. But, those moving averages were broken in May as the crash came in this market, sending BNB/USD down. The 200 SMA (purple) provided support on two occasions but despite being pierced, the price reversed and moved above it. Now, Binance coin has moved above all moving averages as buyers try to resume the large bullish trend.

The 200 SMA has been broken this time

On the monthly time frame, the 20 SMA was holding this crypto coin up during the end of 2020 and early in 2021 it bounced off that moving average. It surged to $700, but the crash came in May which is displayed by the big bearish candlestick on the monthly chart. But Binance didn’t make new lows in the following months while forming a hammer candlestick in July, which is a bullish reversing signal after the decline. August is looking bullish so far, which means that buyers are back in control at the moment.

Let’s see if the support zone will hold on the monthly chart
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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.