A trend that is playing out to defend the BNB $220 liquidation level
Data shows that Bitcoin is being sold off for USDT, which is swapped into BNB in order to support the $220 price level
This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Quick Take
- CryptoSlate reported that if the price of the token BNB were to fall past $220, this could create a $200 million liquidation.
- In the past month, BNB has dropped 20%, fell as low as $224, but is now back up around $247.
- Reports from the Twitter account Skew suggest that a trend has emerged since 27 May.
- Bitcoin is being sold off for USDT.
- USDT has been used to purchase BNB aggressively since 27th May.
- BNB is also being sold for BUSD, which suppresses the volatility in BTC.
- Finally, BUSD is being traded into BTC, suppressing downside volatility, meaning BTC can be swapped out for USDT, completing the cycle.
- Therefore, the Bitcoin selling pressure seems to be coming from the Binance exchange, though whether a single entity is behind any of the mentioned trades is unclear.
- CZ has denied the claims that Binance has sold BTC or BNB, as per community concerns.
