Binance Coin (BNB) is trading in the green, making modest gains in early trading on Thursday as crypto market leader Bitcoin holds above the $32,000 mark and gives investors a bit of a breather after the bear run lately. At the time of writing, BNB/USD is trading at around $303.
After crashing towards $290 in the previous session, Binance Coin has reclaimed the key $300 level. However, with investors still wary about the uncertain outlook for Bitcoin and other cryptocurrencies, the bearish pressure is far from over as far as BNB and other digital assets are concerned.
Binance Coin faces additional pressure owing to the regulatory challenges building up against the world’s largest crypto exchange Binance. A few days after the UK’s FCA announced a ban on the exchange’s operations in the nation, Santander UK decided to block its customers from making payments to Binance, days after Barclays imposed a similar ban.
In addition to the regulatory challenges faced in the UK, Binance is also coming under the glare of regulators across several other countries, including Thailand, Japan, the US and Cayman Islands. After coming down hard against cryptocurrency mining, China has also blacklisted the Binance website.
Looking ahead, Binance Coin is likely to face pressure as investors turn their attention to conventional instruments such as stocks amid the change in the market sentiment. With markets focusing on the rise of inflation lately, cryptocurrencies are losing favor, although some experts maintain that it’s a good time to buy the dip. If this happens, BNB could find some support in the medium term.
Key Levels to Watch
On the H4 chart of BNB/USD, moving averages and leading technical indicators MACD as well as momentum are signaling a strong presence of sellers. With the price sitting above the immediate support at $296 but under the pivot point at $318, it could take some time for the sentiment to reverse.
Increased selling pressure in Binance Coin can take the price below the support level to test the next support at $270. However, in case buyers enter the game to buy the current dip and trading activity picks up across the wider crypto sector, BNB could make its way back up above the pivot towards the first resistance at $343.