Binance Coin price might face correction despite Binance releasing bullish 2023 overview

One would say that Binance might have had a rough year, given its founder Chengpang Zhao's exit and the company being pursued by enforcement action. Binance Coin price, amidst all this, remained largely correlated to the broader market cues, which is likely changing now.

Binance had a good year

Binance released its 2023 end-of-year report on Thursday, which showcases that the company had a good run this year. Per the report, the world's largest cryptocurrency exchange added about 40 million new users, marking a 30% increase from the 2022 end, along with the total number of registered users reaching 170 million.

One key focus of the report was compliance, something Binance did not have a good encounter with this year. Earlier this month, Binance was penalized with a $4 billion fine for its past conduct surrounding historical, criminal compliance violations as well as sanction issues. 

Part of the settlement also included the founder, Chengpang Zhao, resigning as the CEO of the company. Binance acknowledged all of this, stating,

"This year marked the start of a new chapter in Binance's history. By reaching settlements with U.S. regulators, we took responsibility for our past conduct. The scrutiny has helped create the comprehensive compliance program we have today.

However, apart from this, Binance also shelled out over $213 million for its compliance program throughout 2023, noting a 35% increase from 2022. Furthermore, thanks to its global compliance program, the company now holds licenses, registrations and authorizations in 18 jurisdictions across the globe.

Binance Coin price might be looking at correction

Binance Coin price is vulnerable to noting some decline either towards the end of the year or when 2024 begins. The reason behind this is the recent 23% rally that took place over the past three days. This rise resulted in the altcoin filling the Fair Value Gap (FVG) from seven months ago.

This zone, from $ 286 to $302, marked an inefficiency or imbalance that occurred when BNB crashed in mid-May. The FVG was created due to strong selling pressure, and when this happens, the price trades down, begin to make a bottom, and then climb back up. This is done to test the previous high that was made, and as soon as the fair value gap is filled, the price sells off again.

In the case of the Binance Coin price, the FVG has been filled, making the altcoin susceptible to potential correction. Trading at $328, the cryptocurrency has a chance of bouncing off at $300, but technically, a stronger support floor is marked at $271, which is in line with the 200-day Exponential Moving Average (EMA).

BNB/USD 3-day chart

Nevertheless, the crypto market is volatile at the moment, and a rally cannot be ruled out completely. Further increase would set the target for Binance Coin price at $347, where it will be encountering a 19-month-old resistance block. Breaching this resistance would push BNB above $350 and invalidate the bearish thesis.