Binance Coin price to tank 10% as Bitcoin withdrawal ban is lifted and then reinstated again

Binance Coin (BNB) price is having a manic Monday as traders are clearly not fans of The Bangles’ song. Price action in BNB slid lower in ASIA PAC trading right after Binance Holding lifted its ban on crypto withdrawals in Bitcoin. The company came out quickly with a statement saying that the outflow is purely technical as it scrambled to reinstate the ban just hours into the process. Bitcoin itself is in a depressed mood as well, which could contribute to a 10% drop this Monday.

Binance Coin sees its holding coming out with a weak response

Binance Coin price is in for a rough ride as traders are dropping BNB like a stone this Monday morning in the ASIA PAC session. Binance’sPR department tweeted that the outflow volume is a purely technical move from cold to hot wallets, but that does not cover the overall descent from Bitcoin and other cryptocurrencies as well. Meanwhile, the ban has been reinstated again, and it appears that pending transactions are being processed by replacing them with higher fees.

Binance Twitter Communication

BNB bulls are being slaughtered right now as bears have easily taken control here. This Bitcoin withdrawal debacle offers them a big window of opportunity. Bulls had to default on holding the 55-day Simple Moving Average (SMA) and are now heading lower toward $308 at the monthly S1 support. Should Bitcoin drop another leg lower, expect BNB to be dragged along with it and say goodbye to $300. The 200-day SMA at $299 is the only t big support level nearby to hold the tide. 

BNB/USD  4H-chart    

Communication going forward will be crucial here as Binance Holding could still salvage the PR debacle. A firm statement or a grace period of some sort with lowered fees could improve investor sentiment, who might then stop selling their stakes in Binance Coin. A quick lift would undo the current decline and price Binance Coin back at $324.