Analyzing BNB’s rebound opportunities hours after $6.3B hack, altcoin sell-offs
BNB saw a sizeable retracement below its Value Area.
Binance, the world’s largest crypto exchange by volume, reported a security breach incident with an estimated total impact of $6.3 billion. At the time of writing, roughly $3 billion of the affected assets had been frozen on-chain.
The incident caused panic in the markets and led to a Bitcoin [BTC] sell-off. In the 12 hours before press time, BTC’s price fell by 5.2% from $81.7K to $77.4K. Crypto liquidations measured $1.50 billion in the last 24 hours, with $1.28 billion in longs liquidated.
Binance Coin [BNB], the exchange token, fell by a commensurate 5.2% over the same time period. Co-founder and former CEO of Binance, Changpeng Zhao, assured users that funds were safe, pointing to Chief Customer Service Officer Yi He’s statement on X and the rapid response from Tether and Circle to freeze the affected assets.
Popular crypto analyst and trader Ali Martinez suggested that a buying opportunity could be around the corner. The $73K-level for BTC, Ethereum [ETH] at $2,000, and XRP at $1 would be his buy-the-dip targets.
Where would BNB offer such a similar opportunity?
On the 1-day chart, the swing structure flipped bearishly with a daily session close below $703.6. This level was the latest swing low in BNB’s uptrend from under $600 in August.
The price bounce from $680 to $718 at the time of writing brought the altcoin back into the Value Area, highlighted within the Fixed Range Volume Profile tool.
Plotted from the previous swing low, this tool marked the Value Area High (VAH) at $711 and VAL at $770, and the Point of Control at $750.
Traders’ call to action – Buy!
The latest bounce has brought BNB back within the short-term range from mid-September. However, the daily structure saw a bearish change of character. Hence, despite the bounce, swing traders need to be cautious.
BNB seemed to be presenting a risky buying opportunity. A deviation below the local range on the back of an unforseen news event like Binance’s hack, followed by a swift recovery, may be a possibility.
Whether this bullish scenario comes true depends on capital inflows that will be dictated by Bitcoin and the wider market’s sentiment.
Final Summary
- Binance’s security incident has severely shaken market sentiment and led to a crypto market liquidation cascade.
- BNB saw a sizeable retracement below its Value Area and will need to reclaim $700 with strong demand to keep the bullish bias alive.
