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We exceptionally dedicated Saturday to Bitcoin, but today we will look at some altcoin – Binance Coin (BNB). This stock market coin has appreciated by more than 90% since the May low, which is certainly a good result. However, it has not yet been won, because the market is facing important resistance and, moreover, the whole crypto market is starting to pretend to want to go into correction.
Of course, Bitcoin decides in this regard, but it is from yesterday’s analysis our king lost a position over $ 47,000. It is clear from the market that not maintaining this level is not exactly positive. So far, however, nothing dramatic is happening. The markets are still in a pretty good mood.
Try Saturday’s educational article at Quantitative easing – how does this central bank tool work?
Current situation on 1D TF BNB / USD
As mentioned, Binance Coin has appreciated by more than 90% since the May low. Which is logically a decent performance. However, the growth itself took quite a long time, as there was a repeated attempt to break the $ 205. However, the sellers were more and more unsuccessful. The last effort actually ended in such a way that the course did not even come close to support.
It is great in the BNB market that we have a nicely defined high and low from which it can be created side business zone. This band is certainly worth watching, because whatever party the BNB chooses, it will have a huge impact on future price developments. Logically, if we break through the resistance to $ 450, there is a huge chance that the market will continue the bull run.
While the breakthrough of the aforementioned $ 205 can cause massive sell-offs and, most importantly, condemn the coin to the bear market. So simply put, the break down is very bad, the break up is very good. Why is a breakthrough from the trading zone so important? You can find the answer in volume profile market.
We know from the profile that it is within the monitored range traded huge volumes – a market equilibrium is created. Therefore, there is an accumulation or, conversely, a large redistribution. So a break to one side or another will tell us what’s really going on between $ 205 and $ 450. Otherwise, the price growth itself is quite modest compared to previous expansions to the BNB.
The first half of the year was terribly dynamic. Which is simply due to the fact that the demand is not so marked so far. When we look at volumes, we find that they are consistently very average. The contrast is clearly visible at first glance. It shouldn’t look like this, but maybe the situation will change quickly with a breakthrough of $ 450.
Indicators
RSI values are steadily above 70 points, which is definitely bullish. However, it is also clear from the indicator that the positive momentum is taking a break. In addition, we can conclude from the development of the curve that the price expansion is not as aggressive as before. The MACD indicator also confirms this.
In conclusion
It will be very interesting to see where the BNB will break through. The truth is that when there is a breakthrough of $ 450, the new all time high is within reach. In return, humiliating the support at $ 205 can be considered a huge problem. So we’ll see where the market decides to go. As I keep saying, it all depends on Bitcoin.
Even a genuine $ 450 breakthrough does not automatically mean we are going to ATH. It may happen that Bitcoin is very serious at that moment, which puts the bulls in a very bad situation. The situation can be reversed 180 degrees. There is simply no certainty in the financial markets.
ATTENTION: No data in the article is an investment board. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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