Binance Coin price sees the Grinch popping up as he offsets the market with U-turn data
|- Binance Coin price goes 180 degrees and replaces its Monday gains for a loss.
- BNB is currently trading back below the key technical level.
- Expect another small nudge lower as traders await confirmation for the Christmas rally.
Binance Coin (BNB) price is slipping lower this morning as the party mood from Monday got turned around in the late US trading hours as equities ripped lower. With that, cryptocurrencies were tanking and saw BNB print a 1% loss. Although that is not such a big issue, the bigger picture shows that BNB is currently trading below a crucial moving average and could be set to fall back below $280, limiting the chances of a Christmas rally.
BNB sees the chances for a white Christmas diminishing
Binance Coin price slipped below the all-important 55-day Simple Moving Average (SMA) on Monday after bulls and bears heavily fought the level. Bears got a hand from US economic data showing that economic activity is not slowing down at all, even as the Fed has hiked substantially. The risk at hand is that markets got a bit too ahead of themselves, thinking that the Fed would reach its plateau by December or January, while that could now be much later in 2023 or not even at all.
BNB thus sees traders trading very small volumes to get out quite quickly should US Dollar strength come back with a vengeance. Bulls will not give up that quickly, but with the loss of the 55-day SMA, it is not unthinkable that bears get the chance to push price action back to $272.20. That would mean a 6% drop for this week if that US Dollar strength gets bigger.
BNB/USD daily chart
Currently, the Grinch in this story, which is the US Dollar, has not been strengthening that much since this morning in the ASIA PAC and European session. For example, the Dollar Index (DXY) is trading at -0.1%, and the EUR/USD is steady at 1.0500. Expect BNB to get pumped up toward $323.80, which will not make a new high as November, but at least it will be in a good area to continue toward $390 in the longer run.
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