Going invest. Market analysis

BNBUSDT Analysis Overview

During 2022, we have seen the US economy strengthen as the FED (Federal Reserve) hikes interest rates to curb inflation. This has worked very well for the USD (greenback) across the board, and we have seen the USD strengthen. As we all know, USDT is pegged to the US Dollar and we have been seeing something different in the cryptocurrency market. The crypto market struggled all through 2022, although as of Mid 2022 we are starting to see some crypto-currency strength, including some positive gains on BNBUSDT.

BNBUSDT Technical Analysis Daily TimeFrame

*chart is below
ibb.co/S6NxsG5

BNBUSDT found support at the 186.8 price level and gained 77.21% to the 328.4 price level which acted as a key resistance area, with the 200-day SMA giving additional confluence as a resistance level. The price then retraced to the $259.6 level which lines up exactly with a 50% Fibonacci Retracement. Where the price traded in a ranging channel on the daily timeframe, as the bulls and bears had a tug of war and there was no clear price direction between Mid-August 2022 and October 2022.

November seems to be a month where BNBUSDT has started to find its strength breaking out of the ranging channel and retesting the previous $328.4 price level. BNBUSDT has crossed the 200 smooth moving average from the daily timeframe and from a price action and technical point of view we can expect some long-term bullish price action from BNBUSDT. We cannot excuse the chances of a retest, which would give a clearer signal of which direction the market could take next. Although sometimes the BNBUSDT market has proven to make parabolic moves without any retest.

BNBUSDT Technical Analysis- Trading Volume

The volume of BNBUSDT being exchanged on the blockchain network has dramatically increased from a low of 89 930 on the 22nd of October to an extreme high of 1 100 0000. This increase in the volume of traded BNBUSDT coins has been the main driver of the price of BNBUSDT. As trading volume continues to increase we are seeing the BNB cryptocurrency regain its value again. Will it get back to the $639.40 price level? Only time will tell.

BNBUSDT Fundamental Analysis

Inflation

chart is below
ibb.co/FsG5xc2

Inflation in the US has increased from 3.2 percent in 2011 to 8.3 percent in 2022. This means that the purchasing power of the U.S. dollar has weakened in recent years. Purchasing power is the extent to which a person has available funds to make purchases. Inflation has continued to rise in the US which has led the FED to increase interest rates to slow down the inflation.

Interest Rates

chart is here
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2nd chart
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In the latest FED interest rate speech, Powell reiterated that price stability is the bedrock of the US economy and they will stop at nothing to ensure that remains as they need to create a sustainable labor market that benefits all. The FOMC raised the interest rates by 75 basis points and they continue to anticipate that ongoing increases will be appropriate. This represents the highest annual interest rate in history increasing by 4300%.

Recession
As signs of a recession in 2023 continue to loom, the crypto market has begun to gain some strength. This could be a sure sign that investors are moving to higher-yielding but more risky crypto assets to cushion themselves from a recession. This could also drive the BNBUSDT price much higher. 2023 could be a good year for the cryptocurrency market including BNBUSDT