Binance Coin: BNB Presents Another Opportunity for Interested Buyers

  • Binance Coin has recently cooled by some 13%, back to a critical near-term area of support, ahead of further leaps north.
  • BNB/USDT presents an opportunity for buying on the dips, as a technical pullback required following bull exhaustion.

BNB: Recent Price Behavior

Binance Coin over the past days cooled south by around 13%, after the last strong run to the north. BNB is a token that has massively outperformed the rest of the market following the price’s bottom. On 7th December 2018, the price produced a new low for the year, which was the lowest it had been since December 2017. Buyers initially started to gradually return to the token, something that was very steady as it tried to find firmer footing.

Since this bottom area, BNB/USDT has gone on to gain a whopping $287% to a recent high of $16. The price has not been to these heights since June 2018, which demonstrates just how strong of a run BNB is on. In terms of the weekly performance, BNB/USDT has been rallying for six consecutive weeks. The bulls have been ploughing through key zones of resistance with ease, similar characteristics to the run higher seen in 2017.

Technical Pullback Opportunity

BNB/USDT daily chart pullback.

The cooling observed for BNB of some 13% over the past five sessions presents an encouraging opportunity for new potential investors or buyers coming in. A small technical correction or pullback will allow further buying to come into play. It could be a textbook entry into BNB/USDT, i.e. buying on the dips. The $14-$15 price region was an area of supply, which has seen the bulls break above recently up at the $16 mark and now cooling using as support.

Should the current daily candlestick at the time of writing Friday continue to hold within the above-noted zone, this could be a strong buying signal. The price would be completing a breakout and then retest of that mentioned territory. It could then use this as a platform to rocket further north, on the greater near-term mission of printing new all-time-highs. However, there are just a couple of small barriers ahead.

Upside Targets

BNB/USDT daily chart.

Further north, eyes will next be on the region of $16.50-$17.50, the price having last traded up at these heights in June 2018. BNB/USDT faltered here heavily after staging a rebound following the January-February 2018 crash. The bulls failed to break down this territory, resulting in chunky selling from June up to December 2018. A move north of this will then see a step back to $20, where the price traded in January 2018. Finally, the $22-$23  is the next target ahead of a push to retest the all-time-high at $25, printed on 12th January 2018 before tumbling.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

 

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.