Today was a rough day for cryptocurrency markets as over $40 billion in overall marketcap was lost. Most coins exhibited double digit losses, and are toppling once again after bouncing off first support. Binance coin was no stranger to the bears as it also lost over 16% in the past 24 hours. Let’s take a look at the charts and see if Binance can hold the current support and speculate whether or not the bloodbath is over.
Source: Coinmarketcap
The major drama with BNB today was the flash crash of their BTC/BUSD pair to a low of $1800. BUSD is Binance’s new stablecoin which was launched with the help of Paxos. Most likely due to low liquidity, the BTC/BUSD trading pair flash crashed before orders could stabilize.
Chart: Binance
The good news is that only about 20 BTC was exchanged during that time, which is insignificant when it comes to affecting the market.
In other more positive news, Binance has recently launched their US version of the exchange known as Binance.us. If you are in the US, you can now sign up to their trading platform and enjoy zero fees for all trading pairs until November 1st.
Chart: @nulltxmark from Tradingview
Relative Strength Index: The RSI is currently at a low 35 points. After dipping below the 30 points threshold twice in the past few hours, it’s heading back down once again. If it stays above the 30 points threshold it will continue to drive the market down, if it crossed below the RSI will signal an oversold market and a rebound will ensue.
Bollinger Bands: The price is still within range but is about to cross below the lower band. If that happens, there will be more pressure for a rebound upwards. Otherwise, the BBs diverge further giving the price more room to fall.
Volume: There is a relatively low amount of volume for the amount of action we are seeing. That means the market shouldn’t move too much at this point. However, at the same time if the price deviates enough, volume picks up extremely quickly.
The RSI and Bollinger Bands are not showing great signs as of right now. While we did have a brief moment to breathe, markets are toppling down once again. It looks like we might see another 5% correction downwards at least until the technical indicators can signal a rebound.
My prediction is that Binance will touch $15.5 before rebounding back up. It’s important to keep in mind that Bitcoin is the leader for this collapse so if BTC continues to fall so will BNB.
Binance Coin Charts By Tradingview
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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