With options worth a billion-dollar expiring today, it seems like a bad day for BTC as the price has dropped by 2% in the last hour. Binance Coin seems to be following BTC’s suit as the price has dropped by 2.04% in the last hour. Regardless BNB still sits at the 8th rank boasting a market cap of $2.45 billion and a 24-hour trading volume of $140 million.
Binance Coin [BNB]
As seen above, the 1-hour chart showed BNB stuck in a sideways range, with the top range at ~$17.76 and the bottom range at ~$15.5. Per the last article, it was mentioned that BNB would decline from $16.81 to $15.25, or suffer a drop ranging anywhere between 8-13%. The price proceeded to dump to $15.4, however, not below that; and as seen above, there seems to be temporary support at $15.44.
This short-term prediction will be no different from the previous one, in terms of the direction of the future price movement – bearish. The main reason being that altcoins are highly correlated to Bitcoin and hence tend to follow its price movement. As mentioned at the start, with the expiry of $1 billion and the formation of a bearish pattern on the daily time frame, BTC doesn’t look bullish. Hence, a drop in BTCs price will lead to a drop in BNB’s.
As for the targets, the first target will be $15.25, which is a meager drop of 3.22% from the current price level. Following this, target 2 [$14.80] and target 3 [$14.46] will be achieved should the bearish pressure persist.
Although, an unlikely scenario here would be for the price to bounce higher, while BTC moves sideways. Supporting this unlikely scenario is the RSI indicator which seems to be bouncing from the oversold zone.
Correlation
Source: Coinmetrics
Additionally, the correlation between BNB and BTC has started to surge. Between June 20 and 25, the correlation has increased by 0.72%. Although the increase isn’t a huge, it is better to wait for a clear bounce from the support or breach before taking the decision to short/long the token.
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