BNB/USD is suffering a loss of value like many of its major counterparts, and its current ‘support’ levels should be considered carefully.

BNB/USD is trading near the 228.0000 level as of this writing, and fast market conditions are creating new price points quickly so readers are advised to double check values versus this article.  As the broad cryptocurrency markets spits out its vast nervousness and causes long term support levels for all of the major digital assets to crumble, Binance Coin should be given careful consideration.

BNB/USD is trading near March 2021 lows, but intriguingly is near what appears to be a critical juncture early this morning.  If the 225.0000 value erodes and support levels vanish near this ratio, BNB/USD will then have an opportunity to retrace to lower depths seen in early February of 2021. The price junctures of 210.0000 should be monitored by speculators who are willing to bet on further downside price action.

But before traders simply sell BNB/USD blindly they need to consider that Binance Coin is needed to make transactions in the Binance ecosystem of exchange. The consideration that traders need the Binance Coin to engage in trading other cryptocurrencies should underscore the necessity of keeping BNB/USD as a way to speculate in the digital asset marketplace. This is not written to encourage buying positions of BNB/USD in the near term, simply to point out that Binance Coin has a utilitarian use and its value is bolstered by this knowledge.

Fast conditions can be seen with BNB/USD like all of its major counterparts. Traders who have the stamina to trade today should consider the use of entry price orders to make sure they are not caught off guard by a wickedly bad fill which leaves them second guessing their take profit goals. If BNB/USD challenges the 225.0000 level and cannot mount an attack over this ratio, this would be a negative signal and could mean selling will grow more aggressive.

BNB/USD is in dangerous waters. On the 7^th of May BNB/USD was trading near 367.0000 and this now looks like ages ago, taking into consideration the vast selling the broad cryptocurrency market has suffered. Present trading conditions remain more than nervous in cryptocurrencies, and the poor sentiment may continue to create a downward price mode for BNB/USD which could test lower depths quickly. From a risk reward viewpoint, BNB/USD seems to have more room to fall currently compared to moving higher.

Binance Coin Short-Term Outlook

Current Resistance: 238.0000

Current Support: 225.0000

High Target: 258.0000

Low Target: 175.0000

The pair will likely hold steady as bulls target the next key resistance level at 50,000 in the coming days.

Bullish View

• Buy the BTC/USD pair and set a take-profit at 50,000.
• Add a stop-loss at 46,000.
• Timeline: 2-3 days.

Bearish View

• Set a sell-stop at 45,760 and a take-profit at 42,000.
• Add a stop-loss at 48,000.

The BTC/USD spectacular comeback accelerated on Tuesday morning as US bond yields ticked lower and on-chain metrics improved. The pair rose to a high of 47,600, which was the highest it has been since January this year. It has risen by more than 45% from its year-to-date low.

US Bond Yields Ticked Lower

Bitcoin and other cryptocurrencies did relatively well even as warning signs of a recession emerged. On Monday, the yield curve inverted for the first time in years. This happened as the overall bond yields of short-term government bonds rose above the longer-dated ones. In normal times, investors demand a higher premium for longer-term bonds.

Historically, an inversion of bond yields is usually an indicator that a recession is in the corner. In most times, it could take several months or years before the recession sets in. The yield curve has been one of the best predictors of recessions in the past few years.

BTC/USD pair also rose as investors priced in more demand for Bitcoin as rumors emerged that Russia was considering accepting payments of oil and gas in the currency. These rumors are yet to be confirmed. If they are, they could be a game-changer considering that Russia is one of the biggest producers and exporters of oil and natural gas globally.

Meanwhile, on-chain data are still supportive of Bitcoin. According to Glassnode, Bitcoin whales have continued to accumulate Bitcoin in the past few weeks. Notably, the amount of outflows has been a bit limited. The activities of whales is usually watched closely by investors.

Other on-chain metrics like the number of active addresses has risen while transactions have increased in the past few days. Exchange balances have continued rising as well while the hash rate has increased.

BTC/USD Forecast

The daily chart shows that the BTC/USD pair has been in a strong bullish trend in the past few weeks. It managed to move above the important resistance level at 45,760, which was the highest level in February.

The pair has also managed to move above the 25-day and 50-day moving averages and is now hovering near the 50% Fibonacci retracement level. It has also moved slightly above the ascending trendline shown in black.

Therefore, the pair will likely hold steady as bulls target the next key resistance level at 50,000 in the coming days.