Trade Recommendation: Binance Coin

Binance Coin (BNB/BTC) is in an unstoppable uptrend. On April 15, 2019, it posted a fresh all-time high of 0.0048134. The market may have been correcting since. Nevertheless, the uptrend remains intact as we have yet to see concrete reversal signals. Therefore, our strategy here is to position by anticipating the next higher low so we can maximize gains for the next leg up.

Technical analysis shows that BNB/BTC is creating a large symmetrical triangle on the daily chart. This is a continuation pattern. This means that Binance Coin is very likely to resume its uptrend once the cryptocurrency breaks out of the pattern.

We are confident that BNB/BTC will eventually break out of the pattern for several reasons. For one thing, the first higher low was generated on May 11th when the cryptocurrency dipped to 0.00276545. This higher low is also bullish because it converted a former resistance into support.

Also, the 200-day moving average is crawling very close to our next higher low target of 0.003. It will act as an additional support level that will help keep the price from falling lower.

The strategy is to be patient and buy on dips as close to 0.003 support as possible. As long as the market is above this level, we expect bulls to trade within this triangle and eventually break out to our target of 0.0047.

The process may take more than a month.

Daily Chart of Binance Coin/Bitcoin on Binance

BNB chart
As of this writing, the Binance Coin/Bitcoin pair is trading at 0.0037668 on Binance.

Summary of Strategy

Buy: As close to 0.003 as possible.
Target: 0.0047
Stop: 0.0045

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.