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BNB Coin and most of the major cryptocurrencies remain under pressure after the U.S. central bank hiked interest rates by 75 basis points as largely anticipated. Inflation numbers suggest that the Fed needs to be more aggressive in combat to fight inflation, while worries about the impact of aggressive interest rate hikes on the economy and corporate profits continue to influence financial markets negatively.

BNB Coin has weakened from $336 to $256 since August 11, 2022, and the current price stands at $269.5. But where is the price of BNB Coin (BNB) going next, in the fourth quarter of 2022?

Today, Crypto Lists will discuss BNB Coin price estimates from a technical and fundamental analysis perspective in Q4, 2022. Please note that there are also many other factors to consider when entering a position, such as your time horizon, take-profit level, willingness to risk and how much margin you have if trading BNB with leverage.

The U.S. central bank hiked interest rates by 75 basis points this Wednesday

The cryptocurrency market is under pressure as investors stay away from riskier assets after another supersized Federal Reserve hike. Federal Reserve lifted its policy rate by 75 basis points for the third time to a 3.00-3.25% range and signaled more large increases to come in new projections showing its policy rate rising to 4.40% by the end of this year before topping out at 4.60% in 2023.

The upside potential for BNB Coin and the cryptocurrency market remain limited, especially after comments from FED that rate cuts are not foreseen until 2024. Fed Chair Jerome Powell said that U.S. central bank officials are strongly resolved to bring down inflation from the highest levels in four decades and will keep at it until the job is done.

U.S. stocks also weakened after Wednesday’s interest rate increase of 75 basis points, and if a downtrend is witnessed in the stock market, the same is usually replicated in the cryptocurrency market. Craig Erlam, a Senior Market Analyst at Oanda, said that the outlook for risk appetite in the near term is not looking good. Brian Klimke, director of investment research at Cetera Financial Group, added:

Going forward, the market is going to be hypersensitive to any sort of Fed comments and data coming up. I would expect more volatility as the market digests them

.”

Head of Galaxy Digital fund and former Goldman Sachs fund manager Mike Novogratz said that cryptocurrencies would not make any significant jump until the Fed shifts its policy from hawkish and goes back to monetary easing. Salah-Eddine Bouhmidi, head of markets at I.G. Europe, believes that the price of Bitcoin is on track to plunge to $13,500 by the end of the year, and if this happens, BNB Coin will certainly be below $200.

Another negative news came this week from Jamie Dimon, CEO of JPMorgan Chase & Co, who reiterated his negative stance on the crypto industry, describing Bitcoin and other cryptocurrencies as “decentralized Ponzi schemes.”

On the other side, the investor and author of the popular book on financial self-education “Rich Dad, Poor Dad,” Robert Kiyosaki, believes that the cryptocurrency market currently offers many opportunities for smart investing.

Technical analysis for Binance Coin

The BNB token has weakened from $336 to $256 since August 11, 2022, and the current price stands at $270. BNB might have a hard time holding above the $250 level in the upcoming weeks, and a break below this level would indicate that BNB could probably test the price level at $230.

On the chart below, I marked the trendline, and as long the price of Binance Coin is below this trendline and $300, we can’t talk about a trend reversal, and the price of BNB remains in the SELL-ZONE.

trading range for BNB

Main support & resistance levels for Binance Coin

support levels for BNB

On this chart (the period from March 2022), 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 again above $300, it could be a sign of the trend reversal, and the next target could be located around $330 or even $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 $200. 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 Binance Coin price

Many surveys show that institutional investors remain bearish on cryptocurrencies, and it is important to say that the bearish sentiment towards cryptocurrencies has not been relegated to just institutional investors alone. The spot markets are also feeling the heat as sell-offs have resumed, and in light of this, Binance Coin (BNB) might have a hard time holding above the $250 level.

Binance Coin remains in the “bearish phase, “but if the price advances above $300, it would be a “buy” signal, and the next target could be located around $330. Traders should also consider that the price of Binance Coin is correlated with Bitcoin, and if the price of Bitcoin jumps above $25000, we can see BNB at $350 or even $400.

What indicates further downfall for Binance Coin

Binance Coin has weakened more than 15% since August 11, and the risk of further decline for BNB is not over. Multiple factors appear to be causing investors to distance themselves from Binance Coin. As usual, BNB’s recent huge volatility is highly associated with the price of Bitcoin and with the U.S. stock market. The upside potential for Binance Coin and the cryptocurrency market remain limited, especially after comments from FED that rate cuts are not foreseen until 2024. Salah-Eddine Bouhmidi, head of markets at I.G. Europe, believes that the price of Bitcoin is on track to plunge to $13,500 by the end of the year, and if this happens, Binance Coin will certainly be below $200.

What analysts and experts say

The U.S. central bank hiked interest rates by 75 basis points this Wednesday and signaled more large increases to come in new projections. Fed Chair Jerome Powell said that U.S. central bank officials are strongly resolved to bring down inflation from the highest levels in four decades and will keep at it until the job is done. The ongoing war in Ukraine also ensures the continuation of an inflationary environment, and the prices of many cryptocurrencies are likely to remain depressed in the short- and probably medium-term. Head of Galaxy Digital fund and former Goldman Sachs fund manager Mike Novogratz said that cryptocurrencies would not make any significant jump until the Fed shifts its policy from hawkish and goes back to monetary easing. On the other side, the investor and author of the popular book on financial self-education “Rich Dad, Poor Dad,” Robert Kiyosaki, believes that the cryptocurrency market currently offers many opportunities for smart investing.

by Our Certified Author
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