- Binance Coin price holds steady after the small decline on Monday.
- BNB sees traders bracing for a crucial showdown between Fed and markets.
- Bulls are putting their weight in the balance as a dovish outlook is expected.
Binance Coin (BNB) is set to jump higher as the US Federal Reserve comes out first with its assessment of the US economy and the best interest rate path approach in the future. Expectations are that the Fed will commit to a small 25-basis-point hike once or twice and go home for the year. If that is the case, a soft landing is nearby as the job market is holding up nicely. The US economy is still growing solidly, and some rejoicing and sighs of relief in several asset classes can be heard.
Binance Coin price entices bulls
Binance Coin price is seeing traders preparing for the US Federal Reserve to announce as the first central bank this week with the European Central Bank and the Bank of England next up after that. For long there has been a feared dislocation between the markets and the central banks. That narrative has shifted to a dislocation between the Fed and the ECB as inflation in the Eurozone suddenly is rising again, while inflation pressure is dissipating further in the US.
BNB found support after the slide lower as this Tuesday's price action gets underpinned around $305. Bulls are not letting go of the price action either. Should the Fed deliver a dovish hike of 25 basis points on Wednesday, expect markets to perceive that as being in line with estimations and trigger a bullish wave. A break above the feared $323.80 would make sense with $336.50 as the next profit level nearby.
BNB/USD daily chart
A breakdown would occur if Jerome Powell comes out hawkish and the Fed sticks to its 50 basis-point hikes with further commitments in the future. Markets will need to change their stance and price out the Goldilocks scenario. That means risk assets would drop lower, and BNB would head toward $290 in search of the 200-day Simple Moving Average.
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