Binance Coin, or BNB, was one of the only good performers of the 2018 bear market, and has also done well during H1 of 2019. But since the summer, like most altcoins, it has seen a steep retracement that can’t be said to have concluded.
Starting with the 3-day, we see that BNB has retraced quite a ways and failed to hold the support level surrounding the “golden pocket” 0.618-65 Fibonacci level. But it has bounced precisely off of the 0.786 level, which also happens to sit on the next support level down. Volume is down overall, mostly back to 2018 levels.
We also see that this downtrending formation has formed a falling wedge, a bullish pattern with the expectation of a break up. And in the case of BNB, we might reasonably expect this to play out, considering the token’s popularity and centrality in the market. Of course this generally depends on a broad turnaround in altcoin performance.
Looking at a 2-day BNB/BTC chart with indicators, we see that the RSI is making new lows here, and briefly went into oversold territory. But MACD looks like it may cross bullish soon after several attempts already to break bullish, and that the histogram is ticking up at an increasing rate and may soon cross positive.
Indeed, the histogram here has been ticking up hard since May, with the lows getting ever more shallow. Only for believers in the fundamental prospects of BNB, is not a bad time to accumulate; but in general things look ambivalent and not very strong.
Turning to the USD(T) pairing on the weekly chart, we see that BNB fell a nasty 20% the week before last down to $20. Some volume has come in to support BNB at this level, in the middle of support in the low 20’s.
We see little on the indicators to support any view of recovery. What once was looking like a possible hidden bull divergence now looks more like simple weakness. The histogram has been choppy in the past months, although it is now flattening out and has a chance to reverse - but it is already deep in negative territory.
In all, this once star-performing exchange crypto has a muddled picture, and its performance during the rest of 2019 and into 2020 may have more to do with Bitcoin than with Binance. The indicators look mostly weak, with some exceptional possibilities. On the basis of momentum trading alone, BNB is not currently a good buy for swing traders.
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