Crypto prices rebounded nicely following their dip at the start of the week, with EOS and LTC feeling the full force of the bounce with 16% and 13% gains respectively. Over 99% of the 2,102 coins on CoinMarketCap moved into the green, with Bitcoin moving off its $3,750 support area. Where we go from here largely depends on what Bitcoin does next after alts helped drag it up to the $3,900 resistance level again.
BNB on a Rocket Ship
BNB was the undoubted star of the last few days, enjoying a 25% jump since Monday, thanks in part to the announcement of another ICO on its launchpad. This was also down to a Twitter ‘ask me anything’ with Binance CEO Changpeng Zhao, who laid out some future plans for Binance that clearly got the crypto community excited and wanting to snap up the coin.
BNB has been on something of a crusade this year, up from $5.92 at the start of the year to $13.51 today. A 128% increase in two months would be impressive in a bull market, but in the middle of a bear market it’s quite something. Barring some news to drive it on, BNB’s remarkable rise means that a pullback is likely in the short term. In the medium-long term however it is hard to look past BNB as a potential top 5 coin, so picking some up on the anticipated dip might be worth considering.
$BNB is gonna dump once this ending diagonal finishes. A lot of divergence in the daily TF already with volume tapering off typical for fifth waves. Buying this now would be super risky. You have been warned#BNB #Crypto #BTC $BTC pic.twitter.com/QPe344eM78
— TheWolfOfAllStreets (@GerardWalker5) March 6, 2019
Alts Leading the Way?
Bitcoin’s jump to the $3,900 area perpetuated a pattern we’ve seen repeating since we entered this range in November, clearly seen below:
Bitcoin is normally the asset that drives the rest of the market, and it’s interesting to see the reverse apparently now in effect, with alts like BNB and LTC, which itself has seen a 120% increase since December, dragging Bitcoin up instead. Alts have done their bit for now however, and it’s down to Bitcoin to finally push through that $3,900-$4,000 resistance level and use it as support, after which we might see a mini bull run and the alt season that has been spoken about on social media. Another rejection of this area would be bad news for the short term, but it might not be disastrous, as long as the $3,700 level holds.
There is the potential that we continue ranging in this area for the foreseeable future, but the more times we get rejected at the $4,000 barrier increases the likelihood of a further correction.
