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
Summary of Strategy
Buy: As close to 0.003 as possible.
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.
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