Binance Coin: Price Analysis, Feb.2019

2019-02-05 05:10:17

Cryptocurrencies are struggling to move up, even after having been in a bear market for over a year and falling anywhere between 85 and 99 percent from their individual all-time-highs.

Investors with open positions are experiencing huge losses, and the ones sitting on the sidelines are scared to enter, as the market continues to make new lows on a regular basis. This has resulted in a drop in trading volumes across crypto exchanges.

While many retail traders are turning away from cryptocurrencies, the same cannot be said about institutional investors. The Private Office of Sheikh Ahmed bin Al Maktoum, a Dubai royal and Emirates Group chairman, is helping cryptocurrency fund manager Invao raise funds in the United Arab Emirates (UAE).

Still, the big players have been slow to enter the nascent market of crypto. None of the institutions have truly committed yet.

With no retail investors and no large-scale institutional demand, the markets are reeling and are unable to absorb even a small amount of selling pressure. Let’s see if the prices are likely to turn around from the current levels or are they getting ready to plunge even deeper.

Binance Coin (BNB) has been one of the strongest performers among the major cryptocurrencies this year. It has secured its place in our analysis after rising to the tenth spot by market capitalization.

After a long downtrend, the BNB/USD pair is attempting to change its trend. It broke out of the descending channel on Feb. 2 and has continued to move up since then. It can now reach the level of $10, which had previously acted as a strong resistance.

Both moving averages are gradually sloping up, and the RSI is in the overbought territory. This shows that the bulls have the upper hand, but a minor correction to $7 is probable.

Since the start of the year, the 50-day SMA has been offering a strong support whenever the price dipped to it. If the bears break down of the 50-day SMA, the cryptocurrency can turn negative.