Binance coin (BNB) price is facing massive headwinds due to the increased regulatory scrutiny in multiple jurisdictions. The native asset of the biggest digital exchange platform is 69% down from its 2021 all-time high. The weakness in Bitcoin is further fuelling the bearish sentiment.
Bitcoin price has rebounded strongly from its September lows. The biggest cryptocurrency by market cap is now changing hands above the $26,500 level. BNB coin has also shown a good recovery and is up 4% from the weekly lows. Let’s analyze its strength against Bitcoin to see where it’s heading from here.
BNB Price Tanks Against BTC
As mentioned in my previous analysis, the BNB/BTC pair has failed to break above the 0.0085 resistance level. This resulted in further weakness in the Binance coin, which has now plunged to 0.0080 in terms of Bitcoin. The pair has slid 8.62% from its August highs.
The BTC pair of an altcoin is one of the best measures of a coin’s strength. Based on the following chart, I expect a strong price rally if BNB breaks the 0.0085 resistance level. However, such a move is unlikely to occur anytime soon as Bitcoin dominance has surged above 50% once again. Binance coin price in USD may remain in a downtrend if the BTC pair remains below 0.0085.
Binance Coin Faces Headwinds From Decreased Activity On BSC
There has been a sharp decline in the network activity on the Binance Smart Chain in the last two years. This is evident from the drop in TVL, as shown in the following chart. BNB is used to pay for the transaction fees on BSC, and its demand has significantly decreased since 2021. Nevertheless, the digital asset still holds a lot of uses in the whole Binance ecosystem.
DeFi tracking website, DeFi Llama, reveals that there is currently $2.83 billion locked on BSC. It is the new low for the blockchain network after its peak of $21.5 billion in 2021. The decrease in TVL can be attributed to the decrease in number of crypto users globally.
Binance Coin Price Prediction
After a strong rebound from its August lows, BNB price failed to break above the $220. The following BNB/USD chart shows that the pair is struggling to break above $214 after breaking below on the weekend. Another rejection from the $220 has made Binance coin price prediction bearish.
A break above $220 might open the doors for a bigger upside push towards $250. However, it is soon to discuss this move as the Bitcoin price action remains uncertain. The SEC’s latest actions against Binance are keeping the long-term
Source: https://www.analyticsinsight.net/binance-coin-price-is-hanging-by-a-thread-is-bnb-going-to-185/