Binance Coin Price Analysis: BNB Outperformance with Bulls Gunning for a Big Retest of the $7.00 Area

  • BNB/USDT holding decent gains of some 6% on Friday, as price maintains upside momentum.
  • Binance announced they are now accepting credit card payments for crypto purchases.

BNB Price Behavior

BNB/USDT was seen running with strong gains on Friday, seen up over 6% at the time of writing. The bulls maintained upside momentum after a chunky pullback at the start of the week. Selling pressure was initially encountered on Monday, when the price ran into a strong trend line of resistance. This was the upper part of an ascending wedge pattern formation.

BNB/USDT daily chart.

The price has been contained within the above-mentioned wedge since early December 2018. This came following the chunky selling pressure from November – December, which hit the entire market. BNB/USDT since has demonstrated a strong recovery, a clear change in trend, as can be seen via the daily chart view.

At present, BNB/USDT the price is running at its fourth consecutive session in the green, having gained around 12%. It does appear that the bulls are pushing for another retest of the upper trend line, which makes up the wedge. This is currently tracking around $7.15, a near-term area of demand can also be observed here, between $7.15-25.

Binance Accepts Credit Card Payments

Binance, the world’s largest cryptocurrency exchange by traded volume, announced they are now accepting credit card payments. Users have to ability to purchase crypto via credit card, directly on the platform.

A partnership between Binance and Simplex, an Israeli-based credit card payments processing company, makes this possible.  Simplex can facilitate users on Binance to purchase via the use of Visa or Mastercard to buy Bitcoin (BTC), XRP, Ethereum (ETH), Litecoin (LTC), Stellar (XLM) and NEO (NEO).

The CEO of Binance, Changpeng Zhao, also known as CZ, commented on the integration:

“We want to provide Binance traders with fast and easy access to crypto, in the most secure way possible. Partnering with Simplex allows us to instantly bridge the gap between credit card payments and crypto for traders globally. On Binance.com, you can now buy crypto with credit cards and start trading in minutes.”

Technical Review – BNB/USDT

As earlier discussed, the next major target area for the bulls will be to break down $7.00-$7.20. Should this be breached, it could very well open the door to a stronger wave of buying pressure. Further north, eyes will be on $8.00-$8.10, the high area seen between 17-19th November 2018. Finally, a return to the pre-November fall levels could then be seen, which is up at the psychological $10 territory.

In terms of support, this can be observed at the lower acting trend line of the wedge, tracking at $5.9500. A break lower would expose the pattern, inviting a high intensity of selling pressure. Eyes would then be on a retest of the below demand area, which is the December 2018 low region. This can be observed tracking from $4.50–$4.00.

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.