BNB/USD on a Bearish Run – Downward Channel in Play!
The BNB/USD cryptocurrency pair failed to stop its previous week's downward rally and drew some other offers below the $320.00 levels.
Arslan Butt•Monday, June 21, 2021•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.
In the meantime, China’s recent restrictions on cryptocurrency activity also played a major role in weakening the cryptocurrency market. The coin is currently trading at 317.90, and consolidating in the range between 311.83 and 341.52. The Coinbase (NASDAQ: COIN) shares failed to recover properly, remaining depressed on the day, as cryptos took a hammering due to concerns that governments and regulators would impose restrictions on them. It is worth mentioning that Bitcoin (BitfinexUSD)
About WordPress, the largest cryptocurrency, and
Ethereum ETH/USD, which comes a distant second, are trading 9% lower. Meanwhile,
Dogecoin DOGE/USD, a recent favorite coin of Tesla (NASDAQ:
TSLA) CEO Elon Musk, is also 5% lower, while at around 6%, the BNB/USD is down too.
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
On the technical side, the BNB/USD pair is trading at the 316 level, with a strong bearish bias. On the lower side, violation of the 310 level might extend the selling trend until 295.87. At the same time, the daily resistance remains at levels around 328.55. We can also see a downward channel on the four-hourly timeframes, supporting the odds of a continued bearish trend in the BNB/USD pair. The MACD and
RSI also support a selling bias in the BNB/USD pair. Let’s consider taking a sell trade below 310 and a buying trade above the same level. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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