Technical Analysis and Market Entry: BNB/USDT Bulls Force Big Breakout from Narrowing Range Block
- Binance Coin has seen a surge of buying momentum come back into play, as the bulls breakout from narrowing trading conditions.
- BNB/USDT has jumped double digits in the session, moving to the highest levels in two weeks.
BNB/USDT: Recent Price Behaviour
BNB has taken a significant leap to the upside at the time of writing on Wednesday, seen up some 9%. The price is heading for the biggest jump seen in a day since 18 September. It comes during a time where the bulls haven’t had any room for much upside. That has very much been the case over the past weeks since June. BNB has been falling across the last fifteen weeks, having lost as much as 62% in value. It dropped from heights of $38 in June, down to $14 in the last week, which was the lowest level hit in six months.
The recent surge higher comes as the bulls managed to smash out from a narrowing range block formation. BNB/USDT was moving within tight trading conditions from 24 September, up until the breakout seen in the current session. It was capped to the upside at $16.50, with support cushioning the price down at $14.70. Given the breakout from the noted conditions, it allowed for a strong wave of buying pressure to come into play.
Binance Launches Eighth Phase of Its Lending Product
The world’s largest cryptocurrency exchange by traded volume, Binance, announced an update of its lending product. Phase eight will see Binance start offering 14-day fixed-term lending products. It will be on a first-come, first-served basis for subscribers being accepted. The subscription period commences on 10 October, ending on 10 November. Interest will need to be paid immediately after the term matures.
Furthermore, on the program the digital assets that will be included are; Binance Coin (BNB), Bitcoin (BTC), Binance USD (BUSD), EOS, Ethereum Classic (ETC), Ether (ETH), Chainlink (LINK), Tether (USDT) and XRP.
The annualized percentage yield on the loans is starting at 3% for Bitcoin and reaches 10% for BNB, USDT and BUSD. The exchange’s CEO Changpeng Zhao did speak praises of the high yield of those loans in a tweet recently saying:
How much interest is your $USD making for ya in the bank? Convert them to $BUSD and let them start to make 10% APY for you.
Given the recent price breakout, further moves to the north are now eyed. The desired entry would be on a retest of the breached range block, down at around $16.50. Lastly, tn terms of upside targets; $18.50, $20.00 and then $22.00. Stops to be placed just following the retest, down at $15.50.