Trade Recommendation: Binance Coin (BNB)

Binance Coin

Binance Coin (BNB/BTC) is in a position where it looks attractive to bottom pickers. The coin has been correcting after posting a fresh all-time high of 0.0048134 on April 20th. The retracement drove the utility token to as low as 0.0022667 on August 6th. That’s a massive drop of over 52% in less than four months.

The good news is that the cryptocurrency is showing signs of bearish exhaustion. Plus, the price is near a demand area. These are the reasons why we’re interested in this market.

Technical analysis shows that BNB/BTC is painting a large bullish flag on the three-day chart. This is a continuation pattern suggesting that the asset’s uptrend is taking a breather. However, once the consolidation is resolved, we can expect the pair to resume its uptrend.

In addition to the bullish continuation pattern, BNB/BTC is also close to oversold territory on the three-day chart. In addition to that, volume has been anemic. These indicators tell us that sellers are losing interest in dumping positions at current levels.

The selling respite on top of the coin’s revisit to a demand area is a formula that can launch Binance Coin to our targets.

The strategy is to buy as close to 0.0025 as possible. If bulls can seal 0.0025 as support, we can expect BNB/BTC to rally to our targets of 0.00355 and 0.0046.

The process may take more than a month.

Three-Day Chart of Binance Coin/Bitcoin on Binance

Binance Coin/Bitcoin crypto chart
As of this writing, the Binance Coin/Bitcoin pair is trading at 0.0026598 on Binance.

Summary of Strategy

Buy: As close to 0.0025 as possible.
Targets: 0.00355 and 0.0046.
Stop: 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.

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.