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Binance Coin Price Analysis: 10 January

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Source: Pixabay


Disclaimer: The findings of the following analysis is the sole opinion of the writer and should not be taken as investment advice

A strong performance from the biggest of the altcoins Ethereum has seen many large-cap coins surge. Binance Coin has been one of the best performing exchange tokens, with a YTD return on investment of 195%. BNB climbed past its previous all-time high at $39.2 and was trading at $44.3 at the time of writing.

Binance Coin 12-hour chart

Binance Coin Price Analysis: 10 January

Source: BNB/USDT on TradingView

The 12-hour chart showed that BNB’s outlook is strongly bullish. The $40.2-$41.5 region can be expected to serve as strong support should BNB see a pullback. And a pullback was signaled, although it need not materialize immediately. This dip, when it occurs, can give a good opportunity to enter a long position.

Reasoning

The RSI showed a bearish divergence as it made lower highs while the price continued to make higher highs. The MACD highlights the bullish sentiment throughout December and showed this momentum could have cooled off as the signal line and the MACD line were in close proximity.

The Gann fan lines (yellow) from a swing low at $26.6 highlighted potential lines of support and resistance for BNB. The confluence of the 1:1 line with the horizontal support at $41.5 indicated strong support.

A stop-loss beneath the $39.59 area of support can be used. The move from the swing low of $26.6 projected a 27% extension level at $51.65, hence a take-profit order just beneath this level can be used.

Position

Entry: $41.6

Stop-loss:$39.4

Take-profit: $51.58

Risk-to-reward: 4.37

Conclusion

The bearish divergence presents a good chance that BNB sees a minor pullback. This dip to a strong area of support can be used to enter a long position. The bullish momentum of BNB over the past few weeks is not yet done on the longer timeframe. Ethereum is also nearing its ATH, and BNB has a close, positive correlation with ETH.

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A Biomedical engineering graduate, Yash focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.