FameEX Daily Technical Analysis | CFTC Sues Binance CEO CZ, Causing a Slump in BNB

Yesterday, most of the major cryptos exhibited price depreciation with fluctuations between -5.48% and 7.51%. BNB, affected by the accusation against CZ, Binance CEO, plunged 5.48%, a reversal of yesterday’s strength. In contrast, XRP was relatively strong, surging 7.51%. BTC and ETH, two of the leading cryptocurrencies, fell 3.03 % and 2.89%, respectively.

According to the 4-hour trading cycle depicted below, the price stayed in a narrow consolidation range of $26,650 and $28,868. However, with the current trend, a break below the support price is close at hand. From the perspective of SMAs, the MA7 support was below the MA25 support, indicating a short trend in the short run. Besides, the MA99 support kept going up. If the price trend continues to be sluggish, a short market may appear.

Overall, the market is favorable to the long trend, while the short trend controls the short- and medium-term market. It should be noted whether the price falls below the previous support price of $26,650 and the MA99 support. If so, the short formally dominates the market. Therefore, it is recommended to go short at present and enter into further orders when the trend is clear.

Source: TradingView

During a previous trading session, three major U.S. stock indexes were in a mixture of up and down. The Dow Jones index climbed 0.60%, showing the strongest trend. Similarly, the S&P 500 index edged up 0.17%. Instead, the Nasdaq index was the weakest, falling 0.47%. Meanwhile, two of the leading cryptos, BTC and ETH, fell 3.03% and 2.89%, respectively.

As to political and economic fields, banking stocks were surrounded by positive news. Silicon Valley Bank (SVB) was formally acquired Monday. In addition, First Citizens BancShares will acquire SVB’s deposits and loans, as well as other assets, from the Federal Deposit Insurance Corporation (FDIC).

The U.S. government is considering expanding its emergency lending program to banks, while deposits from smaller U.S. banks have decelerated flow into industry giants such as JPMorgan Chase and Wells Fargo.

The Senate Finance Committee held a hearing on bank failures Tuesday. Michael Barr, vice chair of the Federal Reserve (Fed) for supervision, testified Monday that the SVB failure was a textbook case of mismanagement. The bank failed to address long-term problems. Ironically, the actions it eventually took to strengthen its balance sheet led to a bank run, causing its rapid collapse.

Source: Yahoo! finance

Over the past 24 hours, there has been a total of $116.811 million in long liquidations and $27.03 million in short liquidations, resulting in a net long liquidation of $89.781 million. A sharp drop in BNB yesterday resulted in a surge in long liquidations and renewed enthusiasm in the market.

The Fear & Greed index has stayed at 64, still over the significant threshold of 50. This suggests that the market has become cautious optimism. However, due to the unclear market trend, it is recommended to observe the subsequent trend.

The Bitcoin Ahr999 index has slightly fallen to 0.78, which is above the support level of 0.45 but below that of 1.2. This shows that the short-term trend becomes strong, but the long-term trend is still a bear market. Therefore, It is not recommended to buy the dip in batches. However, purchasing small amounts through dollar-cost averaging (DCA) may be a viable strategy. 

According to the above analysis, the overall market atmosphere has changed, implying a short market may come in the short run. Therefore, we recommend periodically buying with a fixed amount and selling them gradually as the market rises.

Source: Coinglass

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.