Recently, we saw some controversial news related to Binance popping up. On the one hand, the organization ceaselessly develops its infrastructure and even got involved in the space of decentralized finance by launching the DeFi staking platform. But on the other hand, traders hear about the lawsuit filed against Binance by Fisco, the US-based cryptocurrency exchange, in the North California jurisdiction.
In a nutshell, the plaintiffs are accusing Binance of having very relaxed KYC requirements, which makes the exchange platform a fertile ground for money laundering. It remains to be seen whether this lawsuit would have a devastating effect on Binance, like the one that BitMEX and its founder Arthur Hayes suffered lately after being accused of money laundering by the US authorities.
The situation on the historical chart clearly tells us that BNB is doing well, regardless of all economic and legal turmoil, as it has been staying in the uptrend since its emergence in 2017.
BNB all-time chart
Therefore, Binance Coin has a strong safety net, so to speak, and might allow itself to drop below $20 or even $15 without endangering the structure of the macro uptrend. It has only 31% to go before reaching the all-time high at $39.45, and the price has already approached the $30 area this year, but given the worsening situation around the COVID-19 pandemic (the anticipation of the second lockdown that could make both crypto and traditional markets capitulate once again) and the uncertainties with regard to the outcome of presidential elections in the US, as well as the second stimulus package from the Federal Reserve to keep the financial markets afloat.
All these factors will surely exert a significant impact on the price of Binance Coin, and the rest of cryptocurrencies, possibly hampering its bullish progress. Besides, autumn is becoming a dull season for crypto, meaning that it could take months for BNB to overcome that 31% barrier and establish a new ATH. Plus, let’s not forget about the lawsuit as it could also throw some grit in the bearings.
On the weekly time frame, we see that Binance Coin is staying high above the 50-period exponential moving average, thus giving the price action a nice bullish bias.
1-week BNB/USDT chart
Also, BNB has been very respectful of the Fibonacci retracement levels, having used 0.5 as resistance before a major breakout to 0.786, which coincides with $32.5. Now, as the price was rejected at both 0.0786 and 0.618 ($27), we expect Binance Coin to retrace to $23 within the framework of the bullish flag pattern, or travel southward to the 50 EMA and use it as support before another upswing.
MACD here is very bullish, moving decisively towards 4, showcasing the strength of bullish momentum and the upward direction of the trend. Therefore, traders should use the possible retracement either to $23 or $20 as an opportunity to go long on BNB or add to the existing position as the exchange coin is likely to surpass the ATH in the coming months or at the beginning of 2021.
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