We recently considered the case of Binance Coin (BNB) as well set up to continue outperforming Bitcoin (BTC) in 2020, and as another weekly candle closes we can still feel confident in this possible. BNB put in a number of solid indications that it may be nearing the end of a corrective period – although here, like with other cryptos, we see one momentum indicator that still looks uncooperative.
Going straight to the BNB/Bitcoin weekly chart, we first note that the two-week retracement that BNB has been in, has held above the important 55 EMA after dipping below it during the trading period. Altogether we have seen a moderate retracement, a little below the .5 Fibonacci retracement level – enough to form a healthy bottom.
The main thing to notice here is the histogram, which has followed other cryptos in starting to roll over. This implies a flagging momentum, and if we don’t see the market start to come alive soon we may see an extension of the MTF corrective period and perhaps more downside.
If we move to the daily BNB/Bitcoin chart, however, we see a curious response to the bearish weekly histogram. The price retracement from last week has held completely within both regional support and the local market structure, and volume poured in yesterday as price rose, breaking profile.
More notable still is the daily histogram, which is looking very specifically like it will resume its bullish expansion. This is essentially the opposite of what the weekly histogram is telegraphing, and may suggest a building bullish momentum. One of these timeframes is probably going to end up giving way to the other; and in this situation, we should probably keep in mind that the high timeframe trend is up.
In summary, BNB looks healthy and stable in its market structure, and actually like it wants to take another leg up. This may signal bullish trends on both LTF and MTF charts; and the HTF chart also looks bullish save for the slowdown in the bullishly contracting moving averages represented by the histogram. General market bias remains up, and it is hard to consider shorting here.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com