As Binance Celebrates Two Years, BNB May Soon Return to Uptrend - Long Term Price Analysis

Just as Binance are ticking over their second birthday, we thought it’d be fun to evaluate the market prospects of the proprietary Binance Coin (BNB). Happy birthday, Binance.

Binance Coin was one of the big hits of 2018, thriving even during the bear market. 2019 has also been very good, although with so much growth already (into the top-ten market capitalization), we must wonder how much more gains can be got out of BNB.

Indeed, there has been plenty of bullish fundamental news out of Binance recently: the ultra-popular exchange days ago launched margin trading on its platform, joining its spot market and DEX; Binance announced yesterday that it will promise to burn 40% (!) of its token supply, rather than use it to fund operations; and even listed the legendary meme coin DOGE last week.

We’ll only consider the BNB/BTC pairing here: with Bitcoin still locked in a long-term uptrend - true until proven otherwise - even just staying at parity with BTC means eventual profit in fiat terms.

We’ll start with the monthly BNB/BTC chart, and we can straight away see that BNB is probably at the far end of a long period of correction. The crypto’s record for downtrending months was five, from July to November 2018. The present correction is already in the middle of its fourth month; and this one is much steeper, owing to a much higher runup in the first place.

Plenty of support coming in(source: TradingView.com)

We also see that BNB retraced into the important support zone that defines this market’s swing area, and has been bought up there. This precise area also happens to contain the Fibonacci golden pocket area between 0.65 and 0.618, from a range based on the previous swing low. Sell volume was down for the previous month as well - a good sign.

Looking at weekly chart, we see a general downtrend still in play. Strong buying so far has pushed this week’s candle back up from key supports described above; but so far there is little else on this chart indicating trend reversal. RSI, MACD, and histogram are pointing down.

HTF indicators are still pointing south(source: TradingView.com)

Volume looks set to slightly outpace last week’s, with much of it attributable to strong buying. Here, we get a sense of accumulation.

The 3-day chart (below) is a bit more interesting, as we see some faint signs of strength out of the lows. Here, if we reach, we can get the notion of a faint bullish divergence along with some decent buy volume from support. The histogram is faintly ticking up so far, and closing (tomorrow) in this aspect would be a good sign.

Signs of strength are faint but there(source: TradingView.com)

The 2-day looks even better, with a doji candle marking the bottom in thick support, and buy volume building steadily.

On the 2-day, we definitely see support(source: TradingView.com)

For all of these high timeframe charts, resistance will eventually come in at the ₿0.003 price. Once we begin testing that mark multiple times, break it, and successfully retest it, we may consider a trend reversal at hand.

BNB, and Binance, have been shining success stories of the crypto industry through 2018 and into 2019. As such a fixture of the industry, it seems doubtful that this will change.

Featured image by Marco Verch, Flicr, CC by 2.0

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.