Binance Coin Continues to Shine as Bitcoin Seeks Direction
Binance Coin (BNB) continues to reach back to back 2019 all-time highs and its success has some analysts wondering if it will outperform Bitcoin over the long-term.
On Tuesday Binance Coin (BNB) 00 notched a new all-time high of $32.43 as its market capitalization leaped over $4 billion.
The 7th largest cryptocurrency by market cap has surged 16.46% over the past 48 hours, 36% over the past week, and 502% in 2019. Multiple timeframes show BNB is overwhelmingly bullish and everyone is wondering how high the altcoin can run.
Let’s have a look at the charts to see what the future could hold for BNB.
Binance Coin Price Analysis: 4-HR Chart
BNB continues to set higher highs and trades well above the ascending trendline that held since February. After reaching a new USD high at $32.43, BNB is taking a short breather to consolidate and the RSI has pulled back from 76 and currently descends below 66.
As seen on the 4-hour chart, BNB is clearly in a stair-step pattern and the process appears to be repeating itself as BNB consolidates to prepare for the next leg up.
At the time of writing the 4-hour MACD is crossed bearish and descending from overbought territory and it should also be noted that the daily MACD is the most extended it has been since January 2018 when BNB reached its previous all-time high of $25.13.
Over the short-term BNB could pullback to $30.80 and further to $29.86 where the 20-MA of the Bollinger Band indicator is located. A full retrace of Tuesday’s gains would bring BNB to $28.39 and this point also aligns with the ascending trendline which has not been broken since March 19.
BNB/USDT 1-Hour Chart
The 1-hour chart show BNB below the middle arm of the Bollinger Band indicator and as both bands tighten and the RSI descends below the ascending trendline, it’s possible that BNB could pullback to the levels mentioned above.
BNB/BTC Daily Chart
On Tuesday the BNB-BTC pairing also turned bullish as BNB set a higher low above the 12 and 26 EMA and the 12 EMA is on the verge of crossing above the 26EMA and the daily MACD is bullish and about to roll over 0.
Unarguably, BNB’s price action is being driven by successive IEOs paired with BNB and the new lottery system, which requires applicants and participants to hold a predetermined amount of BNB.
Surely the upcoming Harmony IEO on May 27, the launch of Binance DEX and recent announcements like this one from Binance CEO Changpeng Zhao are supporting BNB’s rapacious advance to new all-time highs.
[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]
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Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase