BNB/USD stumbled to long term lows a handful of hours ago as the broad cryptocurrency markets remain in a downward spin.
BNB/USD briefly touched the 203.0000 price level a handful of hours ago. The lower mark this morning penetrated last month’s low seen on the 12th of May when BNB/USD momentarily hit the 205.0000 mark before reversing higher. However this morning’s lowest depth did not produce the same violent reversal higher as it did on the 12th of May and this could prove significant.
The move higher produced in the second week of May when long term lows were seen, saw a rise in price to nearly 280.0000 within the same day. A reproduction of that upwards reversal today likely has little faith to build on. Meaning speculators remain extremely wary and are likely braced for more negative price movement, after yesterday’s crash within the broad cryptocurrency marketplace.
As of this writing BNB/USD is traversing near the 228.0000 level and the recent lowest depths of Binance Coin are still within sight. Â Intriguingly while many of the major cryptocurrencies are now testing values not seen since 2020, BNB/USD still has not fallen below values seen in early March of 2021. Optimists may stand up and cheer and claim this means a reversal higher can be produced near term. However, skeptics of which there are likely many may look at technical charts, and believe if the 200.0000 level is broken lower in BNB/USD another steep fall may occur in Binance Coin value.
Binance Coin is used to facilitate trading on the Binance exchange and is speculated on too by traders. It should be noted the Binance exchange had to stop transacting trades in Bitcoin yesterday momentarily when transaction levels became extreme. While this may not have a direct correlation on the price of BNB/USD, the fact that Binance had to halt trading should serve as a cautionary reminder regarding the volatility which clearly exists currently.
If the broad digital asset market remains nervous, and it likely will, BNB/USD may continue to see tests of recent lows again. Â The near term promises to be volatile and traders who are contemplating selling positions cannot be blamed. Risk management needs to be practiced by all traders under the present trading conditions.
If BNB/USD fails to produce a significant rise above the 240.0000 level in the short term, this may be a sign that another move lower could be demonstrated sooner rather than later. Â If support near the 212.0000 level starts to be flirted with this would be a negative sign. Speculators need to be ready for price velocity. If the 200.0000 mark level fails to hold back selling positions today, BNB/USD could see a test of February 2021 prices around the 185.0000 juncture.
Binance Coin Short Term Outlook:
Current Resistance: 250.4000
Current Support: 212.0000
High Target: 279.9000
Low Target: 185.5000
