Overall sentiment for crypto, for the most part, this month has been negative. We have seen massive sell-off after sell-off, investors weighing in on a hawkish Fed and fears of a global economic slowdown due to Omicron. As a result, most of the coins have shrunk and Binance Coin (BNB) supported the broader market trend. The coin has fallen 12% this month alone. So, is it time to buy this dip? However, here are some important indications:
Bearish sentiment in crypto will continue until 2022 unless something drastic happens.
Sense of risk aversion and reduced cash flow over the holidays could make any Santa gathering unachievable
BNB needs to test resistance to the upside to around $ 532 if indeed a busted rally will occur this year
Data source: Tradingview.com
BNB – price action and analysis
It has been a very hot time in crypto in December. So it’s no surprise that BNB is down for the month. At the time of writing, the coin was already 12% lower in December. A massive early morning sell-off at the start of Monday’s session also caused intraday losses to jump nearly 4%, continuing a downtrend that started with stocks.
But unlike most small and mid cap coins, BNB isn’t that far away from this year’s all-time highs of around $ 686. While some coins are down nearly 70% from 2021 highs, BNB is still in the 25% mark.
Should you buy this dip?
A 12% drop in any asset over a month is always worth watching. But the downward pressure on the BNB has still not abated. 2021 is about to end on a tough tone for crypto bulls and as such BNB may slip further. The best time to assess the decline would be after Christmas or at the start of the year.