The sentiment in the crypto market continues to remain bearish, pushing all cryptocurrencies down. After the attempt to resume the bullish Binance Coin BNBtrend after the crash in May-June-July, they have turned down again and have been bearish for most of September. The hard crackdown in China and East Asia, as well as the soft crackdown in other parts of the world, have hurt the sentiment in this market.
Binance Analysis – The 20 Monthly SMA Still Supporting BNB/USD
The Binance coin has always had the support of the Binance exchange behind it which has been one of the main drivers, as this exchange grew. But, speaking of the crypto crackdown, the Binance coin BNB has been one of the main driving forces behind BNB. But, the fact that BNB belongs to the Binance exchange is now weighing on BNB, apart from the sentiment in the crypto market turning bearish.
Binance coin has been suffering while some other coins, such as Etheeum (ETH), Cardano (ADA) have been showing great signs of strength, and some other cryptos like Axie Infinity (AXS), Fantom (FTM), Solana (SOL), etc have surged until the middle of September. Binance coin also made some decent gain during August, but in the last three weeks, it has tumbled lower, more so than many other cryptos.
Binance is a Chinese company and it’s the biggest cryptocurrency exchange by volume of cryptos being exchanged through it. Malaysia and Singapore have ordered the Binance exchange to cease its operations in their countries, China is banning everything crypto now apart from the digital Yuan which is coming, UK has banned it as well, while other countries Thailand. Italy, Hong Kong, etc have issued warnings against Binance which has forced it to lower the number of customers from these countries.
BNB/USD Weekly Chart – The 20 SMA Holds as Support for Now
Let’s see how long the 20 SMA will hold as support on the weekly chart
On the daily chart, the smaller moving averages, particularly the 20 Moving Average (yellow) and the 50 SMA (yellow) were acting as support during the bullish trend of earlier last year. Then came the crypto surge in the first five months and Binance coin left behind all moving averages. Th20 SMA only caught up after the bearish reversal and the crash that followed.
The price made a pin candlestick above the 20 SMA, which is a bullish reversing signal after the decline. But after a small bounce, the price turned back and this moving average was then broken and turned into resistance. But after the pin which is another bullish reversing signal, the price turned bullish and pushed above the 20 SMA, with BNB/USD appreciating around 250%.
Although, the ban on cryptos intensified in China and elsewhere and the sentiment deteriorated in the market. So, Binance is back down, as we explained in more detail on our 2021 Binance forecast, but the 20 SMA has been holding during the last two weeks as support. This week’s candlestick looks like a pin which is a bullish signal as we explained before and the week closed, so we might see another bullish reversal now like the one in August. The stochastic indicator is nearly oversold, which supports the reversing idea, but let’s see how the sentiment in the crypto market will be. If it turns around, we might open a buy trade/signal in BNB/USD.