BINANCE:BNBUSD   Binance Coin / US Dollar (calculated by TradingView)
As I see it BNB is about the end of its run in terms of time. I am a fan of using fib channels to chart out large movements and to try and see when the majority of a move is done and in general around the 2 level of the Fib I would expect to see some topping behavior. On a weekly chart we could definitely see some wicking through the 2 level that could get many people looking for more continuation. I personally am going to close my BNB position and putting it into something that is undervalued.

Given how quickly the price action came up I would expect a relatively quick top. After we top a return to the 1 line over the next year or so would be a very natural. One thing I am going to be looking for is the pregnant VSTOP on the daily close on the daily time frame. When you start to see pregnant VSTOPS it is a sign that price action is moving very quickly and it is a sign that the trend will be reversing soon or will need a month or so of consolidation. I'll be out around $700ish

Comment: As I mentioned in the comment section I closed my BNB position and rotated in to LTC. At this point I am disinterested in BNB as it has a lot of bearish divergence on the RSI at the Bollinger band resistance and my 2 level on the FIb Channel. I expect the momentum indicators to crater and a daily bollinger band bounce to set up a bull trap.

Comments

Looks like BNB hit the top
+1 Reply
This_Guhy ahbh.karim
@ahbh.karim, it still may have some upside but I personally decided to rotate out to LTC about 10 hours ago. A lot more upside and it helps me diversify into actually cryptocurrency besides my favorite, Dash.
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The trend is your friend until the end. Looking back at the daily you can see that the trend reversal was signified by a large volume ( green bar) pump. Happy trading.
+1 Reply
This_Guhy Devin7462
@Devin7462, The trend is your friend, but I am looking to rotate out of something that is relatively overvalued into something that has more room to run. Selling high and buying low is kinda hard to otherwise.
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Don't you think that the run is less chart analysis based and more valuation based?
If you take the 100billion valuation of Coinbase and divide the number of available BNB into that number you get a price per coin in the mid 500s.
Fib retracements are nice but I believe that their application in terms of an active valuation of an asset is limited.
If you charted gold during the California gold rush no doubt it would be in the fib red zone. Not to mention the hysterical failure of chart analysis in the current rocket launch that is the U.S market given the free money policy of the fed.
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This_Guhy TuckERM1
@TuckERM1, The charts and valuation interplay with one another. In general, smart money sells things that are over valued and buys things that are undervalued. You can let something that is over-valued run and become even more over-valued if you have a good entry but eventually the smart money will rotate out and new buyers will not appear. BNB has gone about 10x so far. Traders are going to be looking for the next x10 and if BNB merely has one more doubling in it why play with that when so many other assets are staged to go x10 or x15?
+3 Reply
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