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Binance Coin (BNB) Cryptocurrency Is Surging: Here’s How It Can refuel BTC

Analytics

www.newsbtc.com 06 March 2020 22:00, UTC
  
Reading time: ~3 m

Binance coin price is gaining bullish momentum above the $20.50 resistance against the USDT. BNB price action suggests bitcoin could also start a decent upward move if it remains stable above $9,000.

  • Binance coin price is up more than 3% and it recently broke the $21.00 resistance against the USDT.
  • The price is likely to rise further if it clears the $21.45 and $21.50 resistance levels.
  • There was a break above a major bearish trend line with resistance near $19.98 on the 4-hours chart of the BNB/USDT pair (data source from Binance).
  • Bitcoin is trading above $9,000 and if the market sentiment improves, it could rally above $9,200.

Binance Coin Price Gaining Traction

In the past few sessions, binance coin followed a bullish path above the $19.00 and $20.00 resistance levels. BNB price even settled above the $20.00 resistance area and the 100 simple moving average (4-hours).

It opened the doors for more gains above the 50% Fib retracement level of the last key decline from the $23.25 high to $17.69 low. The price is now trading above the $21.00 resistance area.

During the rise, there was a break above a major bearish trend line with resistance near $19.98 on the 4-hours chart of the BNB/USDT pair. It seems like the bulls are currently facing hurdles near the $21.15 and $21.20 levels.

Binance Coin Price

Binance Coin Price

The 61.8% Fib retracement level of the last key decline from the $23.25 high to $17.69 low is also acting as a strong resistance.  If binance coin cryptocurrency surges above the $21.15 and $21.20 levels, it could continue to rise towards the $22.00 and $23.00 levels.

The market sentiment is also likely to improve if the price gains pace above $21.20 and it might help bitcoin in rising steadily towards $9,200 or $9,340.

What If BNB Cryptocurrency Dives?

If BNB fails to clear the $21.15 and $21.20 resistance levels, it could start a downside correction. An initial support is seen near the $20.50 level. If the bulls fail to defend the $20.50 support, the price might retest the $20.00 support area.

Any further losses could push the bulls on the back foot and the price is likely to slide towards the $18.80 support level in the near term. Overall, the current price action is positive and there are chances of more gains above $21.20.

Technical Indicators

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

4-Hours RSI (Relative Strength Index) – The RSI for BNB/USDT is currently well above the 55 level.

Major Support Levels – $20.50, $20.00 and $18.80.

Major Resistance Levels – $21.15, $21.20 and $22.00.


   Source
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