Binance Coin has seen a major drop in September, losing all its 2023 gains and forming a descending triangle above the important support area of $200. A break below this level could trigger more weakness.
The US dollar has been rallying against its peers and major cryptocurrencies, leading to Binance Coin erasing its year-long gains. This is compounded by the uncertainty and scandals in the cryptocurrency industry that have caused investors to flee.
A double top pattern was formed during the COVID-19 pandemic, where Binance Coin tried to break above $700 twice but was unsuccessful. Subsequently, all the gains were erased in 2021.
The chart shows the triangle in blue that was formed and is currently situated above horizontal support at $200. If this is broken, there is nothing left to hold the price until further lower levels.
Bulls will want to see the triangle invalidated in order to avoid more pain. The strength of the US dollar as well as the uncertainty in the cryptocurrency industry are major disruptors for Binance Coin.