The crypto currency markets continue their downward trend due to a drop in the price of Bitcoin. Bitcoin has lost $27,000. Losses in altcoins have exceeded 10%. Altcoins, which are headed for new lows for 2023, are struggling to find buyers. Even BNB Coin, despite the support of Binance, is among those experiencing a fall. So, what’s next?
Binance Coin (BNB)
Binance Coin (BNB) experienced a sharp decline in price after Bitcoin lost its $26,600 support following the FOMC minutes on May 24th. Simultaneous negative statements about the US debt ceiling triggered the sell-offs causing this drop. As of the time this article was written, BNB Coin is finding buyers at $305.
However, ongoing US debt discussions and the expiry of major BTC options on May 26th suggest that there will be more volatility towards the weekend.
BNB Coin Analysis The weakening of BTC strengthens the short-term bearish outlook. The RSI has fallen to lower ranges on the 4-hour chart, highlighting the high selling pressure. A level below $305 for BNB Coin is a zone where fast sales can occur, particularly for investors wanting to profit from futures trades.
BNB Coin Evaluation
Alternatively, if BTC moves away from the risk of falling to $25,000 and closes above $26,600, BNB Coin sales will weaken. In this scenario, there’s a chance we might see a quick rise towards $309.7 and $315.
Coinglass’s liquidation data over the past 4 hours strengthens the short-term bearish view. Approximately $139,000 worth of long positions have been liquidated, which indicates that sellers could push their gains beyond $304. Meanwhile, BNB’s futures open positions have remained below $320 million since mid-May, following BNB‘s drop below a price of $320.
Low OI could impede a recovery in the popular altcoin if BTC fails to regain the $26,600 support. Indeed, Bitcoin failed in its attempt to surpass $26,600 in the last hour. At the time of writing, the price stands at $26,460.
