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Binance Coin Technical Analysis: (BNB/BTC) Star Align For A Bullish Continuation

Published 06/02/2018, 07:04 AM
Updated 06/02/2018, 07:20 AM
 Binance Coin Technical Analysis: (BNB/BTC) Star Align For A Bullish Continuation

BNB has been a strong performer over the past month, in spite of BTC’s dive from $9,900 to under $7,500 and the subsequent bearish waves that followed behind it.

With many investors starting to flock to BNB as a store of value, particularly during market slumps, the asset has been able to continue growing in value without too much interruption.

Looking at the chart today we can see a very promising outlook ahead for BNB as it positions itself again for another big move soon.

Over the course of BNB’s price activity in 2018 we can see that the candles have been consolidating inside a huge bullish ascending triangle, against a resisting ceiling at around 19,000 Sats.

This is also coupled with a strong uptrending support line that has sustained BNB’s progress through bear market declines, providing a foothold for token bullish traders to relaunch from. In the chart above we can see bullish pennant breaking out off the support during the height of March’s downturn and the more recent bear market from BTC’s sudden decline 3 weeks ago.

Looking at the most recent price action, we can see that the candles have broken out again from another bullish pennant, which formed from the peak of the last breakout that breached above the breakout line briefly, before correcting back below the 0.618 fib level.

In the chart below we can see the candles at the top of the spiking green candles are starting to ascend tightly against the upper resistance now.

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Momentum indicators are looking seriously promising for a continuation too, with both the MACD and RSI indicators showing a clear consolidation in momentum, as bullish support gathers in the hopes of setting a new all-time high.

A broader look at the asset’s momentum is looking very bullish, with the 50 and 200 EMA lines (blue and red respectively) holding high above the 500 line (yellow) over 2hr candles.

Binance Coin (BNB) Price Prediction

It’s not often that we see this many promising signs for a bullish continuation on the indicators, along with so many clear-cut bullish pennants appearing in the price action.

That being said, always err on the side of caution. While it’s difficult not to be excited by these indications, always be aware that FUD, mainstream media and other extrinsic factors can have damaging effects on any asset no matter how bullish they may appear.

For a less risky entrance into the orderbook, wait for candles to hold clear above the breakout zone before jumping in and have a clear price point in mind that you wish to exit. Too often traders get caught up in the FOMO and leave it too late to exit from a bull run before it starts to reverse.

The first price target for this run is at the 0.236 fib level, at 21,927 Sats (14.44% ROI from breakout area). We should expect some selling pressure to build around here as the asset edges towards 22,000 Sats, with the 0.382 fib level below providing support for the pullback.

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The second price target is at the 0.0 fib level at 24,342 Sats (27.38% ROI).


This article appeared first on Cryptovest

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