BNB/USD on a Bearish Run – Downward Channel in Play!
Arslan Butt • 3 min read
The BNB/USD cryptocurrency pair failed to stop the downward rally we saw last week, drawing some other offers under $320.00. The Binance Coin is currently trading near $316.95, with a 24-hour trading volume of USD 2,035,090,396. Binance Coin has dropped by 5.65% in the past 24 hours. However, the prevalent selling bias surrounding the Binance Coin was mainly the result of the stronger US dollar, which continued its gains of the previous week, coming close to multi-month highs against other major currencies one day after the fed surprised markets by indicating it would raise interest rates and end emergency bond-buying sooner than expected.
Thus, the stronger greenback was one of the key factors that kept the Binance prices under pressure. Apart from this, another reason for the bearish bias against the Binance coin could also be associated with the headlines that suggest Bitcoin miners continue to face tremendous pressure from China, in the wake of deadly coal mining accidents. These mixed signals are making several investors and crypto traders uncertain about the direction of the crypto market, which is putting pressure on the cryptocurrencies, including the Binance coin.
The crypto market is suffering as a result of the recent flip-flop by Musk, who was its biggest champion until last week. Musk remains a fan of crypto but not so much of Bitcoin, as it requires a lot of energy to mine new coins. The world of crypto, and especially Bitcoin, has recently been burdened by debates over its stability, energy consumption and use by criminals. All these mixed headlines have been keeping the crypto market under pressure.
On the USD front, the broad-based American currency succeeded in extending its bullish momentum from the previous week, remaining well supported near multi-month highs on the day. The gains in the greenback began after the US Federal Reserve surprised markets by indicating that it would raise interest rates and end emergency bond-buying sooner than expected. In the meantime, the market risk-off mood also played a major role in underpinning the safe-haven assets, including the US dollar. Therefore, the prevalent upticks in the US dollar have become a key factor that has kept the Binance coin under pressure.
Looking forward, the crypto market traders will keep their eyes on the updates concerning the decisions of governments and regulators regarding cryptocurrency. In addition to this, the trade/political headlines will also be the key to follow.
BNB/USD – Technical Outlook