Trade Recommendation: Binance Coin
Despite overall bearish sentiment, Binance Coin appears to be gathering bullish momentum as it continues to surprise. The market dropped to 0.001233 on November 28, 2018. At that point, Binance Coin was looking weak. After all, it just broke down from a descending triangle pattern on November 16 when it took out support of 0.001445.
Conventional technical analysis wisdom suggests that Binance Coin should be in deep bear territory. However, the market was able to pull one big bear trap and reversed its fortune. This is the primary reason why we’re bullish on the market.
Technical analysis shows that BNB/BTC may be in the early stages of a bull run. This view comes after the market took out resistance of 0.0016 on January 8, 2019. The price action triggered the break out from the inverse head and shoulders (IHS) pattern on the daily chart. Interestingly, what appeared to be a descending triangle was actually the left shoulder of the IHS pattern.
While the market is currently retracing, the pullback sets up Binance Coin to possibly retest 0.0016 and flip the resistance into support. The chance of an R/S flip is high considering that we have the 50-day, 100-day, and the 200-day moving averages all acting as support around that level.
The strategy is to be patient and buy as close to 0.0016 as possible. As long as bulls hold this support, Binance Coin will likely generate the momentum to rally to our targets of 0.002 and 0.0024.
The process may take a month.
Daily Chart of Binance Coin/Bitcoin on Binance
As of this writing, the Binance Coin/Bitcoin pair is trading at 0.0017687 on Binance.
Summary of Strategy
Buy: As close to 0.0016 as possible.
Targets: 0.002 and 0.0024.
Disclaimer: The writer 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.