by: John P. NjuiPosted on:

Binance Coin (BNB) Could Drop by 70-80% to $50 – Crypto Analyst

Popular Bitcoin and crypto analyst @MagicPoopCannon has cautioned that Binance Coin (BNB) could drop by another 70-80%.

Magic shared his price forecast of BNB in a December 17th Tweet in which he added that Binance Coin has macro support at the $50 price area. He said that BNB was forming a massive head-and-shoulders pattern, as seen below.

Binance Coin Could Collapse – Magic

In a follow-up Tweet, he cautioned that there was a high probability of BNB breaking down below the neckline of the head and shoulders and collapsing.

Magic shared a third tweet stating, ‘BNB weekly chart also shows huge resistance at the 50 week (in orange) gaussian channel flipped to red, breakdown below it, and a huge head and shoulders developing. Ugly, ugly, ugly.’

Binance Coin’s $220 Held Strong Amidst FUD

Magic’s forecast on Binance Coin (BNB) comes at a time the crypto exchange of Binance and its CEO, CZ, have been the subject of constant FUD in the media.

To begin with, in mid-December, auditor Mazars ceased all services to its crypto clients, including Binance, Crypto.com and KuCoin. This resulted in anxiety about why Mazars would make such a move, with some media outlets stating that Binance reserves were the proverbial ‘black box.’

In addition, there was news that the US Department of Justice was investigating CZ and Binance for violating anti-money laundering laws and sanctions. However, the investigations have stalled due to DOJ officials not agreeing on whether to move forward with the charges.

Consequently, the price of Binance Coin hit a local low of $220 on December 17th and bounced to the $250 resistance level a day later, where it got rejected. Binance Coin is currently trading at $243 and looks set to retest $220 for a potential double bottom, as seen in the one-day BNB/USDT chart below courtesy of Tradingview.com.

Also, from the chart, it can be observed that BNB’s daily MFI (green), MACD and RSI (red) hint at renewed buying that could result in a break-out above $250 if Bitcoin and the crypto markets allow. Such a scenario would most likely negate Magic’s forecast of a drop to $50.

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