Technical Analysis and Market Entry: Binance Coin Gearing Up For Another Rocket Into Orbit
- Binance Coin is rocketing higher, gaining over 80% over the last six trading weeks.
- The world’s largest exchange by traded volume, Binance, announced the listing of Binance Coin derivative product.
BNB/USDT: Recent Price Behaviour
Binance Coin has been moving aggressively to the upside consistently so far this year. The price is running towards its sixth consecutive week in the green, having gained a chunky 80% within the noted period. It has rallied from depressed levels of $14 up to current heights of $25, the highest seen since August 2019.
Daily Chart View
Price action via the daily chart view is on a decent advance, moving towards its third straight positive close. BNB/USDT bulls in the session of 11 February, managed to close above a critical daily level of resistance at $25.00. Previously this had proved to serve as a strong area of support, the price breaking back above should be encouraging near-term for bulls.
4-hour Chart View
Looking via the 4-hour chart view, BNB/USDT was moving within a bullish pennant structure from 10-11 February. Market bulls were able to smash through this pattern to the upside, inviting a new wave of buying pressure. There may be room for a retest as the price consolidates at the time of writing, around $25.00 before extending further north.
Binance Coin Derivative Product Listed
Binance recently introduced a new Binance Coin (BNB) derivative product. The listing appeared to have further triggered upside momentum BNB. The world’s largest cryptocurrency exchange by traded volume announced that it listed a Binance Coin perpetual contract on its crypto derivatives trading platform, Binance Futures.
The newest financial instrument is leveraged and paired against Tether (USDT) representing the 17th cryptocurrency to be added to the futures trading platform. Aaron Gong, the Director of Binance Futures, said:
“The BNB contract has been a highly-demanded product and will continue to grow the industry impact of Binance Futures trading platform.”
The BNB/USDT perpetual swap is available for trading and users able to select any leverage from 1x up to 50x. Changpeng Zhao, Binance’s CEO, detailed that the high leverage on this contract aims to meet professional traders’ demand. He noted:
“We have seen an increase in institutional participation in trading, and these professional traders seek out the most efficient ways to trade very quickly, both in terms of cost and performance.”
Given the pace of upside momentum, further moves to the north are still eyed. An entry would be desired upon a retest of the critical daily support at $25.00, which is in proximity to the breached pennant structure. Targets seen at; $28.00, $31.00 and then $36.00. Stops would be placed at $24.00.
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.
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