The cryptocurrency market is surging today amid positive early indices from the US financial market despite the fact that stocks cannot hold their gains. Binance is looking to keep up this momentum by issuing more BUSD.
Binance adds BUSD
The PAX Treasury has worked closely with Binance to issue stablecoins for a while. Today, another 5,148,815 BUSD was issued at the treasury. This came just two days after Binance issued $ 7M BUSD to calm the market.
💵 5,148,815 #BUSD ($ 5,156,775 USD) minted at PAX Treasury
– Whale Alert (@whale_alert) March 17, 2020
Altogether, Binance issued over $ 12 million stablecoins in just about two days through the PAX Treasury.
Arguably, the amount is too small to seriously impact the market, but it does show that exchanges are starting to become more involved in price stabilization. Like the Fed 'cash pump' that supports the economy, the release of many stablecoins is really a form of “cash injection” for the cryptocurrency world. Whether this is good for the long-term market or not is controversial.
BNB technical analysis
BNB price has dropped since reaching a high of 480,340 satoshi on April 20, 2019. On September 21, the price reached the 190,000 satoshi support area. Although it tried to start some upward moves, each fell back to this level each time.
Highlights of the price BNB
- Price made a triple bottom.
- Weekly RSI is up.
- There is support at 190,000 satoshi.
- There are resistances at 210,000 and 235,000 satoshi.
During the recent BTC price drop, the majority of altcoins have dropped at breakneck speeds, breaking below many support areas. However, the “tunez 2.2” trader has drafted a BNB chart, saying that it is the only altcoin he will be exposed to, considering the general market conditions.
the only and i stress only altcoin i would touch rn
leading indicator tho, just give it some time pic.twitter.com/JvxOGwj7Tq
– tunez 2.2 (ceo of theta 🙂 🐦 (@cryptunez) March 17, 2020
Let's take a closer look at BNB's price movement and try to determine the direction.
The main support area for BNB is found at 190,000 satoshi. This is both the previous support zone and 0.786 Fib level of the whole previous increase. This is a critical area to overcome if prices want to rise higher.
Prices that have been trading inside this area since September 2019, may have created an inner trough of the bottom, considered a bullish reversal pattern.
In addition, the weekly RSI created a bullish divergence across the three troughs, so it is very likely to breakout.
The daily chart shows two interesting characteristics:
First, in the current movement, prices only reach support in the form of a wick.
Also, in the first two prices gained, the second bounce was stronger than the first, a sign of strength.
In the short term, BNB is following a descending resistance line. Price is expected to break out of this resistance and move to the nearest resistance zone at 210,000 satoshi.
The next resistance level is found at 235,000 satoshi. Although the price may reach that level, the movement will depend on the price of BTC, as the subsequent drop in BTC prices may cause BNB to act similarly.
In a nutshell, the price of BNB is trading in an important support area, creating a bullish reversal pattern within it. As long as the support area of 190,000 sts exists, we expect the price to rise towards the resistance area given above.
You can see the price BNB here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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