Bitcoin’s price has dipped below the $60,000 mark, causing ripples across the altcoin market. Over the past 24 hours, investors banking on a price surge faced liquidations amounting to $137 million, intensifying the downward pressure on altcoins. This development raises concerns about the resilience of Binance‘s altcoin BNB amidst the increasing supply pressure.
Is BNB Resilient Enough?
BNB managed to hold above the psychological $450 mark, exhibiting a V-shaped recovery above the $500 level and the 200-day Exponential Moving Average (EMA). Despite this, the rally couldn’t withstand the supply pressure, leading to a 3.78% drop. This decline has reintroduced the possibility of the BNB price testing the $455 level.
Moreover, the high price rejection seen in Sunday’s candle indicated additional supply from the 50-day EMA, abruptly ending the recovery rally. The MACD and signal lines are on the verge of halting a positive crossover as BNB’s price continues to fall, delaying positive signals from the MACD indicator.
What Lies Ahead for BNB’s Price?
According to Fibonacci levels, BNB’s price struggled to stay above the 23.60% Fibonacci level, leading to a sharp decline. BNB is currently hovering around the critical $500 threshold. A further drop below this level could result in a free-fall movement for the altcoin, with the next support zone identified between $455 and $450.
Concrete Insights for Investors
– Investors should monitor the $500 level closely as it serves as a critical psychological barrier for BNB.
– Watch for supply pressures around the 50-day and 200-day EMAs which can signal further price declines.
– Be aware that failure to hold above the 23.60% Fibonacci level may indicate deeper corrections.
The continued downward pressure on Bitcoin and its subsequent impact on the altcoin market highlights the interconnectedness of the cryptocurrency landscape. As BNB hovers around significant support levels, investors must stay vigilant to mitigate risks and capitalize on potential opportunities.