BNB “only looks like air below,” analyst warns as BTC price action worsens.

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It looked set to lose $17,000 after Wall Street opened Dec. 16 as US stocks continued to fall.

BTC/USD 1 hour candlestick chart (Bitstamp). Source: Trading View
Analyst: $240 BNB ‘has nothing but air underneath’
Data from Cointelegraph Markets Pro and TradingView showed new intraday lows of $16,743 for BTC/USD on Bitstamp.

The pair had fallen sharply nearly 3% earlier in the day, adding to the losses that immediately followed the one-month highs.

Ongoing concerns about the world’s largest exchange, Binance, permeated the mood, and these came despite CEO Changpeng Zhao’s best efforts to dispel what he dubbed “FUD”. As Cointelegraph has reported, veteran crypto traders have also been skeptical of the credibility of the “craziest rumors” about the crypto exchange industry.

Nonetheless, the markets refused to give them a break, and beyond Bitcoin, warnings grew about the fate of Binance’s internal token, BNB.

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BNB/USD fell to nearly $240 on the day, marking its lowest level since July.

“BNB has nothing but air underneath,” acknowledged popular trader and analyst Matthew Hyland:

“As the 3rd largest unstable crypto, if it crashes here it will take the whole crypto market with it.”

BNB/USD 1-day candlestick chart (Binance). Source: Trading View
The move impacted bearish traders’ longer-term plan, with Crypto’s Il Capo notably already demanding a floor below $50.

The pressure around Binance itself mounted the day the report showing the reserves was removed by accounting firm Mazars Group, which added that it would no longer work with clients in the crypto industry.

Meanwhile, in an argument on Twitter, Zhang publicly mocked a post from outspoken TV personality Jim Cramer, who said he “would trust my money at Draftkings more than to binance”.

“Now we are safe!” Zhang replied.

Crypto hobbles lower with US stocks
Related: Bitcoin Santa Claus Rally Unlikely, According to On-Chain and Derivatives Data

Beyond crypto, US equities posted another weak performance at the open, with the S&P 500 down around 1.4% at the time of writing.

For Mike McGlone, senior commodities strategist at Bloomberg Intelligence, the situation wasn’t as bad as it looks.

“A normal reversal can look like a crash – the tendency for correlations to rise to 1:1 when the stock market falls could be a major driver for all assets in 2023, especially commodities,” he wrote. in a part of the commentary next to an explanatory diagram.

Bloomberg Commodity Spot Index vs. Annotated Chart S&P 500. Source: Mike McGlone/Twitter
Previously, however, McGlone had warned that the market had potential similarities to the pre-1929 Wall Street crash.

The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Source: CoinTelegraph