Why a 20% crash in Binance Coin price should not surprise you?

The price of the Binance coin is bouncing off a stable demand zone that has stopped bleeding for the time being. Bears may push through this support region due to the untapped liquidity on the downside.

Binance Coin has lost nearly 31% of its value in the last five days, and is now trading at $276. BNB has dipped into the $253 to $308 demand zone, halting the slide for the time being. A collapse is likely as purchasers fail to keep up with the general selling pressure.

If the Binance Coin price closes below $253 in three days, it will signal a breakout and a 13 percent drop to the immediate support level of $222. To collect liquidity, the price action will most likely sweep below this barrier.

While bears may find some relief here, the downswing might continue to the next support level at $182. This fall would result in a total loss of 34% from the current position.

Given that the Bitcoin price has not gathered liquidity while resting below the January 2021 lows, the bearish forecast is likely to play out.

Things could be different if the Binance Coin price manages to recover off the $253 to $308 demand zone. The bearish thesis will be invalidated if the market recovers and closes above $336 in three days.

In this circumstance, the Binance Coin price may rise in order to accumulate liquidity above the equal highs of $413 and $432. Binance Coin is the flagship of the Binance platform which is the largest in the world and the trading place of cryptocurrencies including play to earn game utilities like Quint, Decentraland, Axie Infinity and so on.