Binance coin price started a sharp decline after the exchange lost 7,000 BTC (worth around $40M) in a major security breach. However, BNB remains buy on dips near $20.00 and $18.50.
- Binance coin started a major downside correction after testing the $25.00 resistance.
- There is a major bearish trend line forming with resistance near $22.70 on the 4-hours chart.
- BNB price is likely to find a strong buying interest near $20.00 or $18.50.
Binance Coin Price Analysis (BNB to USD)
In a major security breach, Binance exchange lost 7,000 BTC (worth around $40M). It prompted a sharp decline in bitcoin, Ethereum, bitcoin cash, ripple, litecoin, binance coin, and a few other major altcoins. BNB price was down more than 7%, but BTC price managed to bounce back above pre-decline levels.
Click to Enlarge Chart
Looking at the 4-hours chart of BNB/USD, the pair failed on two occasions to clear the key $25.00 and $25.30 resistance levels. A swing high was formed at $25.34 and the price started a major decline.
It settled below the $24.00 support and the 25 simple moving average (4-hours). Recently, the decline got momentum after the security breach news. The price fell more than 7% and broke the $22.00 support.
There was a clear break below the 76.4% Fib retracement level of the last wave from the $21.05 low to $25.34 high. It opened the doors for a push below the last swing low at $21.05.
BNB even spiked below the $20.00 support, plus the 1.236 Fib extension level of the last wave from the $21.05 low to $25.34 high. However, it was brought back sharply and the price is currently consolidating above $20.80.
On the downside, there are many supports near the $20.00 area. If there are further losses, the price could test the next major support near $18.50 and the 1.618 Fib extension level of the last wave from the $21.05 low to $25.34 high.
Overall, binance coin is likely to bounce back and the recent security breach is unlikely to impact the uptrend. As long as BNB price is above $20.00 and $18.50, it is could climb back above $22.00 and $23.50.
The market data in the USD is calculated by TradingView, Binance.