BNB has been one of the stronger altcoins out there for the past couple weeks. It has been holding up well despite the weakness in Bitcoin and other altcoins. After we saw that big push from BNB on 3/13 and started to hold up near highs of the last push, it was on the top of our watchlist for a move. You can see on its daily chart how well it was holding up for several days after that big push on its daily chart:
Our BNB Trade
We had BNB on watch for a breakout of this range. We waited for signs of strength over the 10 mark, because psychological round numbers can sometimes act as resistance in cryptos. Once we saw it holding its second retest of the breakout spot in the 9.60’s after the push to the 11’s, that’s when we got long over 10. Here’s what our BNB trade looked like:
Cryptos will often retest breakout or breakdown levels after breaking the resistance or support level. They can be great risk versus reward buying or short selling opportunities. That’s exactly what we waited for in our BNB trade. You can only trade the BNB coin on the Binance exchange also.
The way BNB was consolidating was very appealing. You can see the big pinbar BNB had on 3/18, when it looked like it was going to breakdown and flush below 8. When you see these wicks during periods of consolidation like this, it means even more buying pressure will come in if it breaks out to the opposite side of the range. Seeing a false breakdown in a crypto you are looking to long will greatly enhance the probability of a big move to the upside, and that is exactly what happened with BNB.
Relative Strength To BTC
What made BNB such an attractive trade for us was its relative strength to BTC, the usual market leader in cryptos. You can see how much weaker Bitcoin’s daily chart looks in comparison to BNB’s:
This is what put this on the top of our watchlist. Right now BNB still looks strong, holding another retest of the psychological 10 level. It will still be on watch for another push to the upside, if it can still hold strong above 10.
Get Alerts To the Best Altcoin Trading Setups
Our cryptocurrency chatroom is the #1 place for cryptocurrency traders. Our community has active cryptocurrency traders of all skill levels. We are alerting each other 24/7 to potential setups to the long and short side. We rarely miss a big move because we have so many eyes on the cryptocurrency markets at all times. Learn more about Cryptostreet here.
Kunal Desai is an American day trader (stocks and cryptos) and founder of Bulls on Wall Street and Bulls on Crypto Street, two online trading academies and informational publications. He has been featured in many high profile publications like Inc, Forbes, Buzzfeed, and Fortune. He has spoke at trading and business events all across the World.