Binance Coin Price Analysis: Big Test for the Bulls in Play

  • BNB/USDT bulls have much upside momentum, a notable out-performer against many of its peers.
  • BNB/BTC is trading back at the highest levels seen since July 2018; greater upside in sight should the bulls break down near-term barriers.

Binance Coin has been enjoying a decent rally to the upside, with solid gains being recorded in the session on Monday. At the latter stages of the day, BNB/USDT is seen trading up with gains of around 5%. The bulls are continuing their recent upside trend, having closed in the green six out of the last seven sessions. A total accumulated advance of around 20% was seen within that mentioned time frame.

BNB/USDT daily chart.

Since the big drop that hit the entire market in early November 2018, BNB/USDT has pushed for a solid path of recovery. Following the bottom area that was hit in December, around $4.1200, the price has recovered over 70%, to current levels. During this grinding higher, price action has formed a rising wedge formation. Despite the strong moves north by the bulls, the price remains vulnerable to downside risks. Typically, by the textbook, a rising wedge formation is subject to a breakout south.

Big Area Must Be Broken

BNB/USDT is facing a huge challenge ahead of greater upside potential. The bulls are once again attempting to breakdown a troublesome supply area. This can be seen tracking from $6.9500 up to $7.2500, the 27-28th January high area. The price has not been above this territory since 19th November, when the market was falling heavily. A break and close above here on the daily will likely open the door for a return to the $8 price territory. Lastly, eyes will then be on a move back to the pre-November fall levels, seen around the $10 area initially.

BNB/BTC Price Advance

BNB/BTC daily chart.

BNB is notably outperforming many of its peers. They of which have been either heavily weighted to the downside, or are stuck within a narrowing range. Looking at BNB/BTC, with the push seen in the session today, it has managed to move to the highest levels seen since July 2018. The bears made a break above near-term resistance, which was seen at the end of January high area. A move and close above the supply seen on the daily, 0.0020700, will be the key for a greater wave of buying pressure.

Should the bulls manage to maintain upside momentum and clear the above-mentioned supply, then eyes will be on 0.002300. This area was the high print seen between 6-7th June. As seen previously, the breakout towards this may initially be seen, which will likely attract a pullback/retest ahead of greater upside. Looking further to the north, 0.002400 would be the next likely barrier of interest for the bulls. Lastly, the all-time heights up at around 0.002700, could then be an attractive retest for the buyers.

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.