Binance Coin Continues to Look Very Bullish

It has been way too long since we’ve had a Binance Coin price analysis! This one is a bit interesting because so much of the positive price action for Binance Coin has been predicated upon F..A, rather than strict technicals.

In addition, the volume for Binance Coin has been through the roof as well this year and $BNB is the best performing coin out of all major coins in cryptocurrency for 2019. So, there is a lot to talk about in terms of $BNB.

But for right now, we’re going to go ahead and put the FA to the side, and see what’s going on with the coin in terms of its TA prospects.

For this one, we’re going to go ahead and look at $BNB on the USDT pairing (not BTC!).


First thing that is notable here is the sheer volume of the Binance Coin on Binance over the past few days. That can be observed by the green and red candle bars at the bottom of the chart.

I fact, all throughout 2019, the volume for $BNB has been crazy. And when you zoom out of the chart, its obvious to see that it is in full bull market mode, which means:

1. There are more green volume candles than red ones.

2. The green volume candles are ‘higher’ than the ‘red’ volume candles (i.e., buy volume > sell volume)

3. The drawdowns have been far and few in between. There’s mostly just been brief periods of correction/consolidation before further advances in price action.


It is also worth mentioning that Binance has already smashed through its former ATH mark (USD-wise):


Taking a closer look at the current price action, the underlying diagonal support that has been drawn for $BNB (the one closest to the price action) is about as accurate of an intermediate support point that we’re going to be able to find (in the near term if the price does continue to consolidate).

Taking a Closer Look at $BNB Price Action


If we take a closer look at the price action, it appears that $BNB is in the midst of a bull flag at the moment (consolidation + continuation pattern).

If this is the case, then it is only a matter of time before $BNB continues on its ferocious tear.

It should be noted that it is possible that the price breaks south of the bull flag, but when viewing an asset that has been soaring the way that $BNB has, there is hardly any reason to suggest that it will not continue on this path for the foreseeable future; momentum indicators notwithstanding.

Underlying Support

To detect this, we’re going to need to switch over to the BTC pairing.

Specifically, the Fibs were applied to the BNB/BTC pairing to assess what a reasonable underlying support point would be (from the all time low to the ATH):


At this current point in time, we can see that it is at approximately 35k sats, which is approx. -11.4% from where the price stands currently.

Conclusion
Without any plausible reason to suggest that $BNB is going to stop its run at any point in the near future (on any of the longer time frame charts; daily/weekly/etc.), it seems most prudent to employ a bullish bias on this one.

Thus, we’re going to use the BNB/BTC chart pairing to develop our S/L here on our long position.

That gives us:


That gives us at least one more solid test of the ATH (at the very least), with a reasonable S/L that doesn’t break the bank, but also is not so close to our entry position that we’re getting stopped out of what would’ve otherwise been a profitable trade.