Binance Coin / USD Technical Analysis: The Rally Continues
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- Binance Coin is bullish in the short-term with price testing back towards the best levels of the year so far
- The BNB / USD pair’s medium-term picture remains bullish with the cryptocurrency continuing to rally above its 200-day moving average
- Bullish patterns are starting to take shape across the daily time frame
Binance Coin / USD Short-term price analysis
In the short-term, Binance Coin is bullish with the cryptocurrency reversing early week losses and trading back towards the best levels of the year so far.
Bearish MACD divergence has yet to be negated on the four-hour time frame, which could at some point signal a major technical reversal in the BNB / USD pair back towards the neckline of the bullish breakout point from early February.
If bulls lift the cryptocurrency above the current 2019 trading high we should expect a further rally in the BNB / USD pair towards the September 1st, 2018 trading high.
BNB / USD H4 Chart (Source: TradingView)
Pattern Watch
The four-hour time frame shows a potential bullish cup and handle pattern formation.
MACD Indicator
The MACD indicator is generating a strong bullish signal with a MACD line crossover underway
Relative Strength Indicator
The RSI Indicator remains bullish, although it appears to be correcting from overbought conditions on the four-hour time frame.
Binance Coin / USD Medium-term price analysis
Binance Coin retains a bullish bias over the medium-term, with the cryptocurrency testing back towards its current yearly trading higher. The BNB / USD pair has been in rally mode since breaking above its 200-day moving average last month, with traders buying any pullbacks in the cryptocurrency.
The daily time frame shows a potential ascending triangle pattern formation on the daily time frame and also a potential inverted head and shoulders pattern; the June 2018 trading high is the favored upside target over the medium-term.
BNB / USD Daily Chart (Source: TradingView)
Pattern Watch
If a bullish breakout occurs, it could mark a significant shift over the medium-term, as ascending triangles can act as reversal patterns at the end of a downtrend, although it must be noted that they are typically continuation patterns.
MACD Indicator
The MACD indicator on the daily time frame is conflicted, with the MACD line overbought, while the MACD histogram is attempting to correct higher.
RSI Indicator
The Relative Strength Index remains bullish, with the indicator trending higher on the daily time frame.
Conclusion
Buying demand for Binance Coin remains strong over both time frames, with bulls quickly buying any dips lower in the popular cryptocurrency.
A break above neckline resistance on the daily time frame is likely to spark another major rally in the BNB / USD pair, with the June 2018 trading high the preferred upside target. Caution is still advised when trading this cryptocurrency as the four-hour time frame is still flagging large amounts of bearish MACD divergence.
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