BNB Coin (BNB), the former Binance Coin, has advanced more than 20% since the beginning of July, rising from a low of $213 to a high of $276. But what is the upcoming price estimate for BNB – will it rise or fall?
The current price of BNB Coin (BNB) stands at $269, which is still approximately 47% off from its 2022 highs that were registered in January. But where is the price of BNB going next, and what can we expect from the next two months of the third quarter of 2022?
Today, Crypto Lists will discuss BNB price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you got if trading futures or CFDs with leverage.
The U.S. Federal Reserve has hiked interest rates by 75-basis points
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- 1 The U.S. Federal Reserve has hiked interest rates by 75-basis points
- 2 The risk of price decline for BNB
- 3 Technical analysis for BNB Coin
- 4 Main support & resistance levels for BNB Coin
- 5 What speaks for the rise in the BNB price?
- 6 What indicates further downfall for BNB Coin
- 7 BNB Coin price expectations from analysts and experts
The cryptocurrency market is advancing this Wednesday after the U.S. central bank announced that it had lifted the policy rate, federal funds rate, by 75 bps to the range of 2.25-2.5%. This decision came in line with the market expectation because the U.S. Bureau of Labor Statistics revealed that the Consumer Price Index had risen to a 40-year high of 9.1% in June despite the central bank’s months-long efforts to curb soaring prices.
Marcus Sotiriou, an analyst at crypto broker GlobalBlock, said before today’s announcement that we could see a rally in the crypto market if the Fed hikes rates in line with expectations, as Bitcoin, in particular, has tended to reverse course after rate announcements this year whenever the announcement was as expected. Marcus Sotiriou, an analyst at crypto broker GlobalBlock, added:
“Every Fed meeting this year has seen a positive immediate market reaction to the rate decision. There’s “a good chance” Fed Chair Jerome Powell could indicate that the central bank will revert to a 50-point hike at its next meeting if growth slows and inflation eases, and the cryptocurrency market will react positively to this “.
The risk of price decline for BNB
Despite this, the risk of another decline for the cryptocurrency market is not over and according to a survey of economists by the Wall Street Journal, the chance of a recession in the U.S. in the next 12 months is now 49%. Investors have already turned markedly more bearish on the economy in recent months, and if central banks continue to act too aggressively, this could potentially move the global economy toward a recession. In that situation, BNB and all other cryptocurrencies could weaken because investors look for safer places to invest their money.
It is important to say that according to a commonly accepted definition of a recession (two-quarters of negative GDP growth in a row), the United States could already be in recession, even though we will have to wait until quarterly GDP numbers are released on Thursday to know for sure.
Technical analysis for BNB Coin
After hitting recent highs above $450 in April 2022, BNB Coin has encountered losses of more than 40%. The price has now stabilized above $250 support, but a break below this level would indicate that BNB Coin could probably test the price level at $220.
Main support & resistance levels for BNB Coin
On this chart (the period from October 2021), I marked the main support and resistance levels that can help traders to understand where the price could move. Binance Coin remains in the “bearish phase, “but if the price advances above $300, it could be a sign of the trend reversal, and the next target could be located around $350. The current support level is $250, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $220. If the price drops below $200, which represents very strong support, the next target could be located around $180.
What speaks for the rise in the BNB price?
BNB Coin has surged more than 20% since the beginning of July, rising from $213 to a high of $275. BNB remains in the “bearish phase, “but if the price advances above $300, it could be a sign of the trend reversal, and the next target could be located around $350. Traders should also consider that the price of BNB is correlated with Bitcoin, and if the price of Bitcoin jumps above $25000, we can see BNB at $300 or even $350.
What indicates further downfall for BNB Coin
Economists have warned that a global recession could be on the horizon, and the consensus appears that the price of BNB Coin will drop again. The price has stabilized now above $250 support, but a break below this level would indicate that BNB could probably test the important support level that stands at $200. The price of BNB is correlated with the price of Bitcoin, and when the price of Bitcoin drops, that usually has a negative influence on the price of BNB.
BNB Coin price expectations from analysts and experts
BNB is advancing this Wednesday after the U.S. central bank announced that it had lifted the policy rate, federal funds rate, by 75 bps to the range of 2.25-2.5%. The market had been pricing in a 50% chance that the Fed would raise rates by 1% and the 0.75% hike is easing concerns surrounding the potential for a more aggressive 1% hike in order to curb inflation further. Despite this, the risk of another decline for the cryptocurrency market is not over and according to a survey of economists by the Wall Street Journal, the chance of a recession in the U.S. in the next 12 months is now 49%. The next two months of the third quarter of 2022 will likely be a tough period for Binance Coin, and according to Deutsche Bank, cryptocurrencies could decline again if the U.S. economy enters a recession. Mike Novogratz, CEO of Galaxy Digital, said that cryptocurrencies could decline more than 50% from the current prices, while Chris Burniske, a partner at the crypto-focused venture capital firm Placeholder Ventures, thinks that a bottom in the crypto markets could be reached in the back half of 2022.