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The crypto market is at the edge of perhaps another move to the downside. Binance token $BNB needs to bounce soon, or face a drop into the void.
The crypto market is in the red for yet another day. Bitcoin is flirting with $26,000 currently, and should it now fall and go through the support at $25,000 then things could get rather uncomfortable indeed for the entire crypto sector.
A bounce in sight?
However, bitcoin is battling and bulls do not look as though they will go down without a real fight. A rather large gap on CME is open above, with the upper bound at $27,620. Given that bitcoin is also looking quite oversold, a potential bounce could be seen later today or tomorrow.
Plenty of bad news around
There is plenty of really negative news on the global financial front, such as Chinese property developer Evergrande going into bankruptcy, but these sorts of events are nearly always priced into the market.
With global financial markets at the edge of their own black hole, there will definitely be a need for bitcoin, which is outside of the huge timebomb of $1 quadrillion + in derivatives. Holders should think of this before selling.
Binance continues to suffer
One issue within the crypto ecosystem is that of the continuing SEC persecution of Binance, the largest crypto exchange in the world by trading volume. Having already published its intentions to sue the exchange and its CEO Changpeng Zhao, the enforcement overhang is having a deleterious effect on Binance.
$BNB on the brink
For the $BNB exchange token things are looking rather shaky. From a technical perspective, $BNB has fallen out of its bear flag and has lost the $220 support. A measured move out of the flag should still see $BNB fall a lot further, but this is probably immaterial as there is really no kind of decent support until under $50, which is a more than 4x drop into the abyss from here.
Should such a calamity befall $BNB, and the exchange goes into a nosedive, the impact for the rest of crypto could potentially be far worse than the FTX and LUNA meltdowns, putting the bull market on hold.
If this worst case scenario does come into fruition it should be remembered that bitcoin, ethereum, and some of the fundamentally stronger cryptos might be at bargain basement prices. Investors should do their research.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.