BNB Price Surges as Whales Lead Recovery Amid US-China Tensions

BNB Price Recovers After Tariff Panic, Eyes $1,452 Technical Target

Why is the BNB Price surging after one of the sharpest market crashes in months?

Binance Coin, the fourth-largest cryptocurrency in the world, shocked traders with a massive 15% rebound in just 24 hours. 

Source: The Kobeissi Letter

After dropping nearly 30% during the October 10th panic, it is now trading above its pre-crash level of $1,250, showing that investor confidence is back.

The big sell-off began after U.S. President Donald Trump announced a 100% tariff on Chinese goods, which rattled both traditional and crypto markets. 

But it now appears the chaos came from a misunderstanding between the U.S. and China over rare-earth export rules rather than an actual policy change.

Binance Coin's Strong Comeback After the Panic

On October 9th, China released new “controls” on rare-earth exports, which barely moved markets at first. 

Trouble started a day later when Trump’s social media post made traders think this was a major escalation in the US China trade war.

Low liquidity on weekends and excessive leverage on exchanges provided the fuel for the fire, which resulted in a huge liquidation wave.

During panic, the Price dropped sharply down by close to 30% within minutes. Whales in the crypto space are said to have shorted prior to the crash.

The moment China clarified that the new export controls were not a blanket prohibition and compliant requests would still be granted, markets steadied shortly.

Within a few hours, the altcoin had regained its pre-crash high, spearheading the market recovery.

Why BNB Recovered Faster Than Others

In contrast to other tokens, the BNB Price recovered well due to Binance's swift response.

Binance founder Changpeng Zhao (CZ) stated that Binance and its strategic partners such as BNB Chain and Venus utilized several hundred million dollars of their reserves to shield users in the liquidation frenzy.

This choice comforted traders and demonstrated Binance's firm balance sheet. Analysts affirm that it's rebound wasn't about poor fundamentals, but a technical correction fueled by high leverage and panic selling.

Long-term investors then came in to scoop up the dip after liquidation orders were cleared, sending prices soaring.

BNB Price Prediction

• Technically, the BNB Price has broken above a significant resistance at $1,236 (23.6% Fibonacci level). 

• It is trading way above its 30-day moving average of $1,066.

• The MACD reflects a bullish crossover, and the RSI (61.59) indicates that there is still scope for additional gains before the token would become overbought.

• If the altcoin is able to hold $1,300 as new support, the analysts predict a move towards $1,452, as per the 127.2% Fibonacci extension.

Source: CoinMarketCap

The coin is now trading at $1298 with an increase of 13.82%, in the last 24 hours, whereas the broader crypto market recovered with 5% increase. 

In all, the BNB price prediction reflects that, the Binance Coin Price outlook will be bullish as long as Bitcoin remains above $115K and daily trading volume continues to be strong above $10 billion.

Market Lessons from the BNB Price Rebound

This incident is a reminder of how quickly political headlines can shake crypto markets. Traders must treat the first tariff-related tweet as a risk warning, not confirmed news. Waiting for formal releases specifically from participating countries can prevent sudden losses.

In the meantime, investors can track ETF flows, open interest, and funding rates, particularly during low-volume weekends.

Given that the Binance coin is currently trading significantly higher than it was prior to the tariff announcement, it is clear that the crash was not due to poor fundamentals but rather to panic in the markets that was triggered by the US China tensions. 

The crypto market recovery story  reflects the market's strength and the speed with which confidence can be reestablished when good fundamentals are supported by decisive actions.

Disclaimer: The article is for informational purpose only, kindly do your own research before investing in crypto market.