Binance Coin (BNB), the cryptocurrency of the number one global crypto exchange has been the best performing alternative coin traded against Bitcoin (BTC). Coming out of the crypto winter of 2018, the firm launched a series of projects among which are the Binance DEX, Binance Jersey and recently the Venus stable coin to rival Facebook’s Libra.
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We believe recent leaks of users KYC data on the Binance exchange reflects a bearish outlook on the BNB Coin, as the price drop by 52.5% against the BTC from its all-time highs.
Let’s look at the technical chart and price patterns at play for the BNBBTC.
BNBBTC Monthly
Binance Coin has been the best performing cryptocurrency paired against Bitcoin. The pair has been forming higher troughs since the breakout of bearish accumulation on December 01 ’17. After a price increase of about 321.4% from the December 17 breakout, the Binance Coin BNB started correcting the gains by roughly 52.2% from the June ’18 high of 0.0026555.
As an early starter out of the crypto winter of 2018, the BNBBTC price increased by 187.6% following a bear trap pattern on December ’18.
After breaking June 01, 2018 all-time high 0.0026555, the BNBBTC moved on to set a new all-time high on April 01 ’19 at 0.0048134.
BNBBTC Weekly
After a price increase of about 80% from the double bullish accumulation pattern on February 18 ’19, the BNBBTC flagged a regular bearish divergence pattern in the overbought area on April 29 ’19. Attempts to restore the BNB price on May 20 ’19 failed to an increase in selling power and consequently led to a breakdown of support on June 10 ’19.
The double bearish accumulation pattern on July 08 ’19 emphasizes selling pressure after setting resistance at 0.003484, followed by another breakdown of bullish accumulation on August 29 ’19.
At publication time, the BNBBTC has declined by about 42.45% from the regular bearish divergence setup on April 29 ’19.
BNBBTC Daily
A view from the daily time frame reveals an earlier entry with lower risk on July 28 ’19 compared to the weekly time frame by a breakdown of bullish accumulation. The Bitcoin price increased by 21.6% from the breakdown price, forcing the pair into the oversold area.
Upon exiting the oversold area on August 07, the bulls pushed the price higher by approximately 12.78%, but started to lose steam following a failure of bullish accumulation supports on August 23 ’19.
BTC has gained 12.57% from the recent breakdown of bullish accumulation support with no clear signal of a price recovery in favor of the BNB Coin.
BNBBTC 4-hour
Notice the regular bearish divergence pattern on August 15 15:00 and how it confirms the following breakdown of bullish accumulation on the daily time frame (August 23). It signaled a decline of bullish accumulation on August 22 11:00, followed by a hidden bearish divergence on August 26 03:00.
The bulls struggle to come out of the oversold area on August 30 but nosed dive back into the zone with the bullish accumulation support on 0.0022848 as the last straw that’s preventing further price decline.
Conclusion
Although the longer monthly time frame reflects a sound bearish outlook, we are on a lookout for a hidden bullish divergence setup, considering that the RSI oscillator already forms a lower low, compared to a higher low of price.
The bullish price recoil may take effect in the coming month of September, and the current price zone is excellent to take profits from shorting the BNBBTC. A supporting chart pattern on the daily and weekly time frame should confirm the bullish campaign. We strongly advice entering short positions with quick exits at the current level.
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