Binance Coin (BNB) price rose on the news of the acquisition. Crypto analyst Valdrin Tahiri states that BNB has emerged from a descending resistance line. Meanwhile, a Binance critic said that CZ is constantly manipulating the price of BNB.
Binance Coin (BNB) rose as a result of the news.
BNB price broke out of a descending resistance line but has yet to regain a key horizontal resistance level. Whether it succeeds in doing so can determine the direction of the future trend. Despite the ongoing crypto bear market, Binance had a relatively successful 2022 all things considered. First, Changpeng Zhao, the CEO of Binance, facilitated the downfall of rival firm FTX by tweeting that it will sell all its FTT tokens.
This announcement sparked the bank rush, the first step in FTX’s downfall. Alongside this, Binance has also launched the Cristiano Ronaldo NFT collection and created a $1 billion industry recovery fund to invest in struggling crypto firms. In more recent Binance news, the exchange is reportedly acquiring Gopax, one of South Korea’s largest exchanges. BNB Chain’s native token, BNB, rose as a result of the news.
Altcoin price at make or break level
BNB price had fallen below a descending resistance line since it hit $398.30 on Nov. The bearish action caused it to slide as low as $220 on Dec. 17. Later, BNB price bounced off and formed a long lower wick (green icon), confirming the $222 support area in the process. The ensuing upward move caused the digital asset to break out of a descending resistance line on January 5, 2022.
Despite the breakout, BNB price has not yet climbed above the $261 resistance area. Whether it is rejected instead can determine the direction of the future trend. A successful break could lead to a rapid rise towards $318, while a rejection could lead to a decline and retest of the $222 area. As a result, the response to the $261 area will be crucial for future BNB price analysis.
BNB daily price chart / Source: TradingViewThe wave count shows the completed correction
The technical analysis on the daily chart looks uncertain, while the six-hour chart is more bullish. The first reason for this is the possibility of an ABC fix that has been completed since November 2021. A:C waves have the 1:1 ratio common in such corrective structures. Also, the ensuing crossover (red line) indicates that BNB’s downward move is not impulsive.
The second reason is the move above the minor $252 resistance area, which has now become support. The field can be retested in the next 24 hours. It also coincides with an ascending support line that has been in effect since Dec. As a result, BNB price analysis can be considered bullish if the price does not close below this support area.
BNB six-hour chart / Source: TradingViewAs a result, the direction of the Binance Coin price trend will be determined by whether the price drops above $261 or below $252. Based on the current price action, a breakout looks a little more likely.
Mike Alfred accuses Binance CEO of manipulation
Verified Twitter user Mike Alfred argues that crypto enthusiasts who use the current Binance Coin (BNB) price as a primary indicator of health and solvency are largely mistaken. Alfred claims that the BNB price only represents the price that Binance CEO Changpeng Zhao (CZ) wants to see until the next liquidity shock comes. The Binance critic also brought an account of Michael Burry and John Paulson’s legendary The Big Short trade in 2008. Alfred explains his views as follows in his post, which he later deleted:
If you are using the price of BNB as the primary indicator of your health and solvency, you will be completely blindsided by what may happen next. The BNB price is only a representation of what CZ wants you to see, at least until the next liquidity shock comes.
Binance CEO says stock market is okay
However, Alfred did not provide evidence when asked to support his argument with any reliable source. BNB is currently trading at $256.94, up 4.4% over the past seven days. BNB touched one of its lowest prices last month after bad actors created messages of fear, uncertainty and doubt (FUD) about the Binance exchange. cryptocoin.comAs you follow, the event caused crypto investors to withdraw over $3 billion from Binance within 24 hours.
Interestingly, the Binance CEO claimed on Twitter that his massive cash outflow was far from the highest five withdrawals he’s ever experienced, and they were trading more during the LUNA and FTX debacle.
Things seem to have stabilized. Yesterday was not the highest withdrawals we processed, not even top 5. We processed more during LUNA or FTX crashes. Now deposits are coming back in. 🤷♂️💪 https://t.co/WLK2KyCym0
— CZ 🔶 Binance (@cz_binance) December 14, 2022
Zhao added that FUD only brings a stress test to the exchange and represents a way to demonstrate its credibility to the crypto community. In another Twitter thread, the CEO explained some of the reasons for spreading panic calls against the company. The Binance CEO has argued that some crypto enthusiasts hate centralization in the Web3 space, regardless of how valuable the centralized exchange is in promoting crypto adoption worldwide.
