After more than two months of consolidation, BNB price has started a new round of bearish trend
Several rounds of Bitcoin liquidations to maintain BNB prices may not go well as the market is already facing a bearish surge
Binance exchange has been in the news recently. Previously due to the SEC crackdown, and now due to the ongoing correction of its native token BNB. The correction came after BTC price retreated from the temporary resistance level of $29,100. Notably, BNB price fell below the 200-week MA, raising concerns about the token’s next move.
Since BNB price has faced extreme bearish pressure, the exchange has carried out rounds of liquidations on its BTC holdings. Binance is the world's largest cryptocurrency exchange, currently holding more than 500,000 Bitcoins, with a strong infrastructure that provides high liquidity. The exchange has reportedly been selling BTC over the past few days to prevent BNB price from falling further.
This could bring the entire cryptocurrency market to a standstill as the recent decline has caused BNB price to trade at some key levels. If the selling pressure increases, then the price could fall off a cliff, leading to a new bearish wave in the cryptocurrency space.
BNB price has entered a support area that has not been touched in the past 14 months. Moreover, the price has fallen below the 200-week MA for the first time in its trading history, which is one of the biggest bearish signals. Therefore, if the BNB price fails to spark a rebound at this stage, a break below $200 could drag the entire market closer to its respective support levels.
Therefore, this week is extremely important not only for Binance Coin but also for the entire market. Therefore, BNB price is expected to be more stable, but the bears seem to be in a lot of dominance.
