The Binance Coin/Bitcoin (BNB/BTC) pair launched its bull run when it took out 0.00068 resistance on January 5, 2018. Its momentum was so strong that went as high as 0.0018382 on January 12. In one week, the market grew by 170.32%. The surge in value was exploited by breakout buyers as they took profits.
Faced with heavy selling pressure, the market went as low as 0.0007005 on January 16. Fortunately for investors, bulls saved the day and brought the market back up to 0.0012101 on the same day. While the price action on January 16 appeared bullish, bears used the renewed momentum to dump more positions. As a result, the market went as low as 0.0009 on February 5.
Technical analysis show that the BNB/BTC pair is creating a bullish continuation pattern in the weekly chart. It is currently consolidating while locked in a wide range between 0.0016 and 0.001. It’s been consolidating for about six weeks now with volume steadily declining. This indicates that sellers are about to lose ammo.
The strategy is to buy as close to 0.001 support as possible. Once the pair is done consolidating, it will most likely resume its ascent to our target of 0.0025. The entire process might take less than three months.
Weekly Chart of Binance Coin/Bitcoin on Binance
As of this writing, the Binance Coin/Bitcoin pair is trading at 0.0010604 on Binance.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.