It has recently been reported that crypto analyst Nicholas Merten has a negative outlook on one of the top-five crypto assets, despite the market appearing to be stable.
Merten, who has over 511,000 subscribers on the DataDash YouTube channel, warns that Binance Coin (BNB) may experience a significant drop if a crucial support level is breached.
BNB could drop in price
He believes that BNB could plummet by as much as 83% from its current price to a level last seen in the first quarter of 2021.
The BNB cryptocurrency is currently in a precarious position. It is hovering just above a support level of around $180, which has been holding steady since February 2021.
However, it is also barely hanging on to the 200-moving average. If the support level is broken, it could spell trouble for BNB.
There is a critical trend line between two higher lows from September 2017 and March 2020 that must hold, along with a line of sideways support and prior resistant highs from June 2019 and January 2018.
If these levels fail, BNB could plummet to around $45 to $40, as shown on the chart.
BNB is trading at $242 at time of writing.
When it comes to Bitcoin (BTC), Merten believes that if it fails to surpass the current resistance level, it may indicate that the chances of a rally are low, and the bear market could persist for longer than expected.
If the previous support range ($32,000 – $36,000) cannot be broken through within a short time, it will continue to act as resistance.
If the support band of the ascending channel is breached and the price drops to around $28,000 or $27,000, it will be evident that the market lacks the momentum to move forward.
Bitcoin is still bullish
Despite being almost 10% below the 2023 high, Ju affirms that Bitcoin is still in a bull cycle. This is due to the low selling pressure, which is a result of the majority of BTC acquired or mined more than six months ago remaining static.
“Bitcoin is still in a bull cycle.
Approximately 71% of realized cap is unmoved BTC (greater than 6 months), indicating low selling pressure from long-term holders currently.”
