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Binance’s BNB Coin Holds Gains When Most Coins Shatter

Binance’s BNB token has struggled to keep gains amidst a bearish-looking crypto market. The 4th largest crypto by market cap has kept over 15% profit in the last 7 days. This comes when other top tokens, including Bitcoin, struggle to trade in the green zone.

As of writing, BNB has also recorded quite a fair amount of gains against Bitcoin and Ethereum. Specifically, the token has garnered around 5.02% over BTC and 5.71% over Ethereum. The coin is also on its way to retouching its 24-hour high of $340 as it trades at $336, press time.

BNB has all the ingredients to start a bullish run this November. The 7-day surge resulted from Binance’s involvement in the acquisition of Twitter by Elon Musk. CZ, the founder of Binance, has now hinted at BNB as a payment method on the social media platform.

Binance Launches Blue Bird Index, Potentially Hinting At Twitter Payment Options

On November 2nd, a blog post announced that Binance Futures would begin trading USDS-M Binance Bluebird Index perpetual contracts (BLUEBIRDUSDT Perpetual Contracts). Binance intends to provide leverage of up to 25x on perpetual contracts. The new price index monitors BNB, DOGE, and MASK. Binance generates the index using weighted averages of the component tokens’ real-time values on the Binance Spot, denominated in USDT.

Miles Deutscher, a crypto expert, wonders if Binance CEO “CZ” hinted at the crypto assets that could be used to pay on Twitter. If Elon Musk implements Dogecoin as a payment option on Twitter, then Binance may look at adding BNB support there. He said,

CZ invests $500m to help Elon Musk buy Twitter. Then Binance launches a “Bluebird Index” comprising of BNB, DOGE, and MASK. Is CZ hinting at these assets being used for Twitter payments (blue bird)?

When asked about just supporting one cryptocurrency on Twitter, Binance CEO “CZ” said it wasn’t a good idea in yesterday’s AMA. Besides DOGE and BNB, CZ believes Elon Musk could endorse other cryptocurrencies on Twitter. More than that, he thinks Musk is studying Twitter following the purchase. It’s also possible that Twitter’s support for cryptocurrencies as payment may be rolled out gradually.

BNBUSD

Binance’s BNB coin is currently trading at $336. | Source: BNBUSD price chart from TradingView.com

BNB Making Bullish Moves

The price of BNB has remained bullish since June. However, it broke down in September after being rejected by the crucial resistance level of $332. For the past six months, this price threshold has remained unbroken—until this October. 

Last week’s last-minute crypto market surge pushed the token past the resistance before settling at today’s price of $325. Investors could sell their shares if the price exceeds $332 again since the multi-month breakthrough would form a new local top.

BNB might find it challenging to advance higher if it encounters resistance in the $335 to $357 zone. If the alternative currency fails to break through, it will likely drop to a level of support, around $299. And with any additional decline, BNB would be forced to retest $259, a crucial support level. Scalpers can make a few dollars here. However, long-term investors should sit tight until the resistance level is broken.

Featured image from Pixabay and chart from TradingView.com

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BNB Price Prediction: Why The Bulls Aim More Gains Above $350

BNB (Binance coin) price started a fresh rally from the $265 support against the US Dollar. BNB is trading in a positive zone and might soon clear the $350 resistance.

  • Binance coin price gained pace above the $300 and $320 resistance levels against the US Dollar.
  • The price is now trading well above $300 and the 100 simple moving average (4-hours).
  • There are two major bullish trend lines forming with support near $320 and $315 on the 4-hours chart of the BNB/USD pair (data source from Binance).
  • The pair could soon resume its rally unless there is a move below the $300 support zone.

Binance Coin Price Remains In Uptrend

After forming a base above the $265 level, BNB price started a strong increase. The bulls took control, resulting in a surge above the $280 and $285 resistance levels.

The price gained pace after it broke the $300 barrier and the 100 simple moving average (4-hours). Finally, it spiked above the $335 level and formed a new monthly high at $337. Recently, there was a minor downside correction below the $330 level, similar to bitcoin and ethereum.

The price tested the 23.6% Fib retracement level of the upward move from the $263 swing low to $337 high. An initial support is near the $320 level. There are also two major bullish trend lines forming with support near $320 and $315 on the 4-hours chart of the BNB/USD pair.

Binance Coin Price

Source: BNBUSD on TradingView.com

The first major support is near the $312 level. The next major support is near the $300 level or the 50% Fib retracement level of the upward move from the $263 swing low to $337 high. If there is a downside break below the $300 support, there could be an extended decline towards the $280 support.

More Upsides in BNB?

If BNB fails remains stable above $320 or $300, it could start a fresh increase. On the upside, the $328 and $330 levels are immediate hurdles.

The next major resistance is near the $335 level, above which the price is likely to aim a test of the $350 level in the near term. Any more gains might send the price towards the $400 level.

Technical Indicators

4-Hours MACD – The MACD for BNB/USD is losing pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for BNB/USD is currently well above the 60 level.

Major Support Levels – $320, $312 and $300.

Major Resistance Levels – $330, $335 and $350.

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Binance’s CZ: High Inflation And Recession Fears Will Drive Bitcoin Adoption

It’s safe to say CZ is bullish on bitcoin and crypto’s future. Changpeng Zhao visited CNBC’s Squawk on the Street and flipped the prevalent bearish narrative on its head. In less than 2 minutes. Most of the things CZ said are based on common sense and a basic understanding of market forces, but still, it’s calming to hear a leader of the industry saying them. Especially in this fear-ridden stage of the cycle we’re in.

.@binance CEO @cz_binance: The macroeconomics situation will be high inflation, the talk about recession…all of those things drive adoption into #Bitcoin.@CNBC pic.twitter.com/EP8OHwPeAa

— Squawk on the Street (@SquawkStreet) July 28, 2022

Notice that even though Binance’s business is dependent on altcoins’ performance, especially BNB, CZ makes a clear distinction between bitcoin and crypto in general. On the other hand, even though the interview is about bitcoin, CZ sneaks crypto here and there. 

In any case, let’s analyze what Binance’s CEO thinks about the current market conditions and the future of bitcoin and crypto.

What Did CZ Squawked On US National TV?

The first thing the interviewer was interested in was the way that bitcoin bulls have defended the “20Kish” line. According to CZ, that was “the last peak” so there’s a “psychological barrier” there. So far, bitcoin’s price had never go lower than the previous cycle’s all-time high. This time it was different, probably because of Tesla’s paper hands and the Terra collapse. However, the market ended up defending the 20K line.

The interviewer then asked about other factors, like the increase in money supply or bitcoin’s correlation to Nasdaq. According to CZ, those are two relevant factors, but in the end “it’s a mass psychology market” and the last ATH is the barrier. It’s only fair that we quote Binance Academy for an explanation of the psychology of market cycles:

“In short, market sentiment is the overall feeling that investors and traders have regarding the price action of an asset. When the market’s sentiment is positive, and prices are rising continuously, there is said to be a bullish trend (often referred to as a bull market). The opposite is called a bear market, when there is an ongoing decline in prices.”

Recently, as we regularly do here at NewsBTC, we checked on the famed fear and greed index for insights into the current market sentiment. This is what we found:

“Last week, the indicator’s value had risen up to even 34 as the coin’s price saw a recovery rally. However, as the run ended and the crypto once again slumped down, so did the sentiment among the investors.

The report notes that this trend indicates participants in the BTC (and wider crypto) market believe that this recent rally was just a fakeout.”

BNB price chart on BinanceUS | Source: BNB/USD on TradingView.com
What’s the next catalyst?

Back to the interview, the next question was about what factor could catapult bitcoin and crypto into their next chapter. Cautiously, CZ said that no one can forecast that accurately. “Nobody really forecasted NFTs, DeFi, etc. Which probably drove the last bullrun.” And in 2017, ICOs seemed to be the catalyst. “Six months before those things happened, very few people can forecast it.”

In bull markets, exercise risk management.

If everything went to 0, will your life still be ok? If no, you invested too much. Reduce it by half and ask again.

Don't over invest. (Not financial advice)

— CZ Binance (@cz_binance) July 29, 2022

Then and only then, CZ speculated. He thinks that the market is so much bigger this time around, with so many new applications being developed. The whole space is moving in a positive direction, with most countries adopting regulatory frameworks instead of banning bitcoin and cryptocurrencies. It’s hard not to be bullish in an environment like this, even if the market is still fearful about the prices.

The last phrase is the funniest, and it goes into the current state of the world. “The macroeconomic situation, there’s going to be high inflation, the talk about recession, etc. All of those things drive adoption into bitcoin… into crypto.”

Featured Image: CZ, screenshot from the video | Charts by TradingView

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Coinbase Listing Sends Binance Coin (BNB), Exchange Tokens Soaring

There’s less than 24 hours standing in between now and the time San Francisco-based cryptocurrency exchange Coinbase is listed publicly for the first time. The shot heard ’round Wall Street has caused exchange tokens in particular to surge.

One of the biggest benefactors has been competitor platform utility token, Binance Coin, along with other similar coins offered by exchanges. Here’s why there’s such interest and demand for the platforms themselves.

The Big Deal Behind The Coinbase Listing And Ongoing Bitcoin Rally

Tomorrow, Coinbase (COIN) begins trading on the stock market in a move that could cause a widespread  “revaluation for this whole segment higher,” according to Amplify ETFs founder and CEO Christian Magoon.

It also comes as Bitcoin price pushes to new historic highs, and crypto “altcoin season” is in full bloom. Coinbase couldn’t be doing better right now, and its debut valuation tomorrow is anticipated to be between $150 billion based on pre-market trading on FTX.

Related Reading | Coinbase Bitcoin Outflows Are The Strongest Bullish Signal “Ever”

The popular cryptocurrency exchange now synonymous with Bitcoin itself has seen its Q1 2021 revenues beat all of 2020 combined.

The company’s “Coinbase Pro” platform is where many institutions and corporations have been doing business.

The high-wealth individuals and companies moving crypto off the exchange en masse has been called the most bullish signal “ever.” And the bull market has been spilling into altcoins and then some.

binance coin bnb coinbase ipo season

Binance Coin has absolutely exploded amidst Coinbase IPO fever | Source: BNBUSD on TradingView.com

FOMO For Exchange Tokens Bolsters Binance Coin Bull Market ROI

“I think we’re going to see more private companies go public because they see the path, hopefully, that Coinbase takes that recognizes the value in the public marketplace,” Magoon also told CNBC during a segment of ETF Edge.

The potential of other platforms like Coinbase to follow suit has prompted exchange utility tokens such as those from Binance or newcomer trading platform FTX.

Related Reading | Number Of Bitcoin Mentions In Company Earnings Reports Goes Parabolic

Binance Coin itself has been an enormous benefactor of the buzz the Coinbase listing has created. Not only could Binance eventually go public as well, but increased trading volumes and utility from Binance Coin has also caused demand to skyrocket.

The popular token is also at the center of Binance Smart Chain that now could rival Ethereum. All together these factors have resulted in a more than 1300% climb from low to high in 2021 alone.

Exchange tokens are flying even more so than CBSE  | Source: Arcane Research

FTT, the token to newcomer platform FTX which has been offering pre-IPO Coinbase contracts, has also been rising and is up more than 700% on the year.

What this all boils down to, is that the cryptocurrency industry is finally being legitimized in the eyes of Wall Street and beyond, which could cause even further repricing of Bitcoin, altcoins, and especially exchange tokens like never before. And it all starts tomorrow with the historic Coinbase listing.

Featured image from Deposit Photos, Charts from TradingView.com
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BNB Soars Above $600, is an Ethereum Flippening on The Cards?

April has seen a stellar run from BNB, growing 86% in less than two weeks and hitting an all-time high today. Over the same period, its market cap has near doubled from $49bn to $96bn.

While this is still just over a third of Ethereum’s market cap, a stalling ETH 2.0 rollout schedule has observers wondering if a flippening is on the cards.

BNB daily chart

Source: BNBUSD on TradingView.com

BNB Benefits From Demand For Cheap DeFi

Whichever metric you use to analyze Binance, whether that’s the number of markets, trading volume, weekly visits, etc., there’s no doubt it’s a significant player in the crypto industry.

Analysts have looked at the reasons for Binance’s success. They highlight its community program, referral scheme, low fees, choice of tokens, and high (crypto) verification-less withdrawal limits. A seldom mentioned factor is also the company’s willingness to branch out into areas other than spot trading.

“Even though there were already more than 100 crypto exchanges when Binance was launched, it managed to take leadership, and really has become one of the most frequently-used platforms for traders.”

The launch of Binance Smart Chain (BSC) in September 2020 was its stab at DeFi. Since rolling out, the total value locked (TVL) in BSC has surged to $31.3bn. And there appears no sign of slowing down. Two weeks into this month, TVL has already increased by $11bn or +65%.

BSC’s main selling points are that it’s a faster and cheaper alternative to Ethereum. With BNB needed to pay BSC gas fees, BNB holders are beginning to reap the rewards.

Researcher Roberto Talamas attributes BSC’s rising popularity with high fees on Ethereum and the development of “white-hot” markets on the platform, particularly, PancakeSwap. All of these factors combine to foster the ideal conditions for BNB to soar to new heights.

Decentralization is Not The Priority For Users

Although blockchain sells itself on the idea of decentralization, Binance products do not offer this. For that reason, purists and Ethereum maxis would argue that both BNB and BSC are poor interpretations of crypto and DeFi.

As mentioned by @TheCryptoLark, BNB’s success shows that users value low fees over decentralization and are voting with their feet accordingly.

“Users are choosing with their feet right now. Low fees trumps decentralization for many users.“

Back in February, Binance CEO Changpeng Zhao could sense the shifting sentiment. He said BSC has twice the number of transactions than Ethereum and called on developers to jump ship to up their user count.

“there are almost 2x more transactions on #BSC than on ETH. If you want more users for your Dapp, you need to be on #BSC now.”

BNB’s rising fortunes present a serious threat to Ethereum. And with Cardano’s Alonzo protocol scheduled to roll out in August, the threat will only intensify as the year goes on.

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Ethereum Institutional Interest is Rapidly Growing; Here’s What On-Chain Data is Showing

Ethereum is not getting flipped by Binance Smart Chain anytime sooner, shows on-chain indicators.

Blockchain analytics platform IntoTheBlock gathered data on Ethereum transactions with volumes greater than $100,000. The portal noted that the second-largest blockchain network processed $20.68 billion worth of transactions in the week ending April 11, leading to a record high volume transfer of $68.87 billion.

“These large transactions are representing over 77% of the daily on-chain volume,” it added.

Ethereum transaction volume in the US dollar. Source: IntoTheBlock
Ethereum transaction volume in the US dollar. Source: IntoTheBlock

Increasing volumes on a blockchain point to its growth as a public ledger. Meanwhile, transactions carrying a larger capital points to transfers between wealthy entities. They could be exchanges, wallet services, and even institutional investors.

The last few weeks have witnessed Ethereum walking out of the shadows of Bitcoin as an alternative cryptocurrency and creating a niche of its own among institutional entities. The biggest example among all was Visa’s first stablecoin transaction via USDC, a token built atop the Ethereum blockchain.

A report published by CoinShares also noted that ETH-based investment products attracted $4.2 billion worth of capital inflows in the first quarter. Meanwhile, Grayscale Investments, a New York-based crypto-focused investment firm, increased its Ethereum holdings from 2.94 million ETH at the start of this year to 3.17 million ETH this April 12.

Ethereum Supply Crisis

Market sentiment analytics portal Santiment noted that increasing demand from “whales” — entities that hold a larger amount of cryptocurrency wealth — led to a supply crisis in Ethereum markets. Now, wealthy investors hold 68 percent of the total ETH supply in circulation. On the other hand, the number of Ethereum wallets holding anywhere between 10-10,000 ETH dropped to its lowest since September 2017.

Ethereum price trades above $2,100. Source: ETHUSD on TradingView.com
Ethereum price trades above $2,100. Source: ETHUSD on TradingView.com

Santiment also noted constant ETH inflows into the liquidity pools of decentralized finance projects. It also noted declines in the amount of Ethereum tokens sitting inside exchange wallets. It pointed at a brewing supply crisis in the Ethereum market while its prices achieve a new historic high above $2,000.

“Another aspect that contributed to Ethereum‘s all-time this weekend was the fact that average fees have dropped back to a 5-week low,” added Santiment. “With fees back to an average of $11.08, this is the lowest since March 5th, allowing for an increased ETH utility.”

Ethereum transaction fees turns lower. Source: Santiment
Ethereum transaction fees turn lower. Source: Santiment

Some bottleneck catalysts continue to pressure Ethereum lower, such as the Binance Smart Chain’s increasing control over the blockchain space. Its native token BNB surged towards $650 on Monday, up more than 1,100 percent on a year-to-date timeframe.

Meanwhile, Ethereum’s extremely positive correlation with Bitcoin continues to pose risks to its decline under the top cryptocurrency’s influence. Bitcoin’s uptrend has paused near $60,000 against the prospect of a stronger US dollar.

Photo by Nick Chong on Unsplash 

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Why This Trader Expects a Huge Binance Coin (BNB) Uptrend Forming

Binance Coin (BNB/USD) is bracing for a massive bullish move in the sessions ahead, a trend that could see the exchange token rise above $450.

The analogy comes from an independent analyst on Twitter, operating under the pseudonym of Crypto Kaleo to distribute day-to-day cryptocurrency updates across its 142,000 followers. Kaleo predicts a wild upside rally in the BNB/BTC instrument as he compares the pair’s current price movements with those last month — that led a parallel instrument, the BNB/USD, to its current record high of $422.

The Breakout Mood

In February 2021, BNB/BTC reached a new high in a breakout move that followed a consolidating move below a descending trendline and pattern top (0.0032 satoshis). After hitting 0.0067 satoshis as its breakout target, the pair started consolidating again under a new descending trendline pattern. Only this time, bulls waited for days before pursuing an upside breakout.

Later, the BNB/BTC pair consolidated near the level coinciding with its descending trendline top at 0.0067 satoshis.

“The first one back in mid-February went nearly vertical afterward,” said Crypto Kaleo, mentioning the chart as shown below. “I expect something similar here, though probably a bit slower considering the higher market cap/longer accumulation period prior.”

Notice how both ATH breakouts had massive wicks / shakeout candles. Source: BNBBTC on TradingView.com
Notice how both ATH breakouts had massive wicks/shakeout candles. Source: BNBBTC on TradingView.com

The analysis appeared as the cryptocurrency market, on the whole, risked correcting lower under Bitcoin’s influence. The BTC/USD exchange rate again failed to log a breakout move above $60,000. Traders unwound their upside positions to secure short-term profits and dropped the pair to as low as $55,400 on Wednesday. It was attempting to rebound this Friday, albeit with weaker volumes.

BNB’s fundamentals typically take cues from the Bitcoin market. The correlation efficiency between the two assets currently sits near 0.75. The general market consensus for Bitcoin is bullish. It means Binance Coin also has a likelihood of tailing the flagship cryptocurrency to its gains.

BNB/USD

Kaleo spotted more similarities in the BNB/USD price movements in February 2021 and right now.

Binance Coin outlook from mid-Feb. Source: BNBUSD on TradingView.com
Binance Coin outlook from mid-Feb. Source: BNBUSD on TradingView.com

and in April 2021:

Binance Coin outlook in April 2021. Source: BNBUSD on TradingView.com
Binance Coin outlook in April 2021. Source: BNBUSD on TradingView.com

“Extremely similar also,” Kaleo stated, “both accumulated/accumulating slightly higher than the ATH they recently broke. “Continuing to play out like the time above. I’m expecting a surge out of this range to a new all-time high and price discovery any time now.”

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Charted: Binance Coin (BNB) Pumps Above $300, Why Bulls Could Aim New ATH

Binance coin price started a fresh rally above the $280 resistance against the USDT. BNB is now trading above $300 and it might continue to rise towards $350 or $400.

  • Binance coin price started a fresh rally above the $260 and $280 resistance levels against the USDT.
  • The price is now trading well above $280 and the 100 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $290 on the 4-hours chart of the BNB/USDT pair (data source from Binance).
  • The pair is likely to resume its upward move above the $315 and $320 resistance levels in the near term.

Binance Coin Price Breaks $300

After forming a base above $220, binance coin started a fresh increase. BNB broke the main $250 resistance and recently surpassed the $275 pivot level.

The bulls were able to lead the price above the $280 barrier and the 100 simple moving average (4-hours). As a result, there was a break above the $300 level. The price traded to a new monthly high at $317 and it is currently correcting gains.

It broke the $305 support level. There was also a break below the 23.6% Fib retracement level of the upward move from the $269 swing low to $317 high.

Binance Coin (BNB)

Source: BNBUSDT on TradingView.com

On the downside, the first major support is near the $290 level. It is close to the 50% Fib retracement level of the upward move from the $269 swing low to $317 high. There is also a major bullish trend line forming with support near $290 on the 4-hours chart of the BNB/USDT pair.

On the upside, the bulls are facing resistance near the $315 and $320 levels. The next major resistance is near the $340 level, above which the price is likely to set a new all-time high in the near term.

Dips Supported in BNB?

If BNB fails to continue higher above $315 and $320, there could be a fresh downside correction. The first major support is near the $295 level.

The next major support is near the $290 level and the trend line. If there is a downside break below the trend line support, there could be a drop towards the $280 support zone.

Technical Indicators

4-Hours MACD – The MACD for BNB/USDT is gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for BNB/USDT is currently well above the 50 level.

Major Support Levels – $295, $290 and $280.

Major Resistance Levels – $315, $320 and $340.