Binance Coin (BNB-USD) is the native coin on one of crypto’s largest and most popular exchanges. This analysis goes into trading on the BNB token as it pairs with Bitcoin (BTC-USD). The pair has had an underwhelming start to the year, and continues to flounder as a result of the progressive strengthening of the counter asset in the pairing.
Two days ago, the newswires were agog with the news that Poloniex had listed Binance Coin (BNB) and stablecoin Binance USD (BUSD) on its platforms. Trading on BNB and BUSD commenced on June 6 on the Poloniex exchange, and features BNBBTC as one of the Binance Coin pairs to be traded on that exchange. There has been some recent tension between Binance founder Changpeng Zhao (CZ) and Poloniex’s major shareholder Justin Sun over the latter’s acquisition of one-fifth of the holding of Steem.
This further consolidation in the crypto world comes just two months after Binance announced its acquisition of Coinmarketcap, the most trafficked tracker of crypto trading prices and volumes. Binance wants to take a firmer grasp of the market and BNB stands to benefit from heavier trading volumes.
With all of this, Binance continues to launch new products and contests to improve the adoption and use of Binance Coin. The latest is the extension of the zero maker fee promotion and the launch of a smart pool service, allowing new account holders on Binance to partake of 10,000 USDT rewards.
The promos and efforts to expand Binance’s reach beyond its exchange have had little impact on recent price action. It is the movement of Bitcoin in the market that is driving this pair, with the latest downside move of the last two days matching the jump of the BTCUSD pair from $9,200 to $9,900.
The technical analysis for BNBBTC starts on the weekly chart. After a period of downtrending prices, the pair turned it around in the week ended May 24, 2020 with a bullish recovery. However, this recovery was short-lived, terminating at the 1.0018421 resistance before price action retreated to the 0.0017745 price area, which now functions as the immediate support.
BNBBTC Weekly Chart: June 7, 2020
To get a better view of what is happening on the pair, we step down to the daily time chart. Here, the reason for the uptrend on the weekly candle of the week ended May 24 is revealed. There was a saucer pattern which formed, with the 0.0017745 price level forming the lid. The price broke above this lid, fulfilling the expectations of the saucer pattern. However, the resistance at 0.0018421 proved too difficult to breach, hence the rejection at that level and subsequent pullback to the 0.0017745 price level.
BNBBTC Daily Chart: June 7, 2020
If the 0.0017745 price level holds firm as a support, the BNBBTC could use this price area as a springboard to initiate a bounce, in an attempt to return to winning ways. However, the price action in the last one week shows that the pair is presently trading in a range…