It has been a remarkable day for all of the cryptocurrencies, tokens, and assets on the market. Bitcoin’s surprising sudden uptrend has caused a lot of shifts to take note of. Perhaps the biggest development is how the Binance Coin price successfully claimed a new all-time high for the second time in three days. One has to wonder how long this momentum can remain in place, though.
A New Binance Coin All-time High
Prior to 2019, the BNB all-time high sat well below $25. That record was reached during the 2017 bull run which triggered a lot of excitement, yet also subsequent losses shortly after. Now that 2019 seems to be the year of price recovery, the Binance Coin price has reached several new all-time highs. The most recent one comes in the form of a temporary push to $30.14, albeit that level could not be sustained as of yet.
BNB/BTC Technical Analysis
Unlike most of the alternative markets, Binance Coin successfully managed to gain some value over Bitcoin. A very steep uptrend materialized yesterday afternoon, resulting in a peak near 0.004 BTC per BNB. As was somewhat to be expected, Bitcoin’s sudden bullish momentum near the same time trigger an equally steep BNB/BTC retrace to more normal levels.
Since that dip, there have been a few attempts at pushing the ratio higher again. Successful attempts saw a value of 0.0037 BTC, 00375 BTC, and 003725 BTC being reached without too many problems. Unfortunately for traders, every push upward has resulted in an equal retrace, for the most part. However, there are some positive developments to take note of as well, assuming this uptrend doesn’t collapse entirely.
A new “buy zone” has been created between 0.0034698 BTC and 0.0035991 BTC. Any price between those levels would confirm the uptrend is potentially reversing, although it could also serve as a juicy entry point for future gains. Other key support levels can be found at 0.0034698 and 0.0033451 BTC. Even the 0.0032998 BTC level can play a key role moving forward. Any of the price levels below those values are up for grabs all the way down to 0.0030094 BTC.
BNB/USD Technical Analysis
For those traders who prefer a BNB/USD pair, things are looking virtually identical. This massive outbreak in value has allowed the Binance Coin price to reach a peak of $32.32, although this was triggered by a wick with very little trading volume behind it. The more realistic top is closer to $30.04, or even $29.07 depending on how one values the uptrend which is currently in place.
Right now it would appear the $30.04 level will act as a strong resistance, as new attempts to break it have all been rejected so far. The price seems more keen to retest support at $28.01, although there is a chance the $29.01 level will become the new “bounce” over the next few hours. Further confirmation is needed to draw any real conclusions in this regard.
If the $28.018 level would not hold, further support can be found near $26.79 and $26.31. If things were to really collapse, the $25.49 level can come into play fairly soon. As the Bollinger bands show signs of tightening, the market can easily break out in either direction. Traders need to keep in mind this current uptrend may look very different tomorrow when most of the “normal trading” resumes.
Conflicting MACD Signals
It is not entirely uncommon for the MACD to indicate how a trend will look in a few hours. For Binance Coin, the MACD for BNB/USD shows signs of reserving rather hard. This uptrend has yielded an overbought territory which sits well above the more normal values. However, that doesn’t mean a bearish period will commence. There may be a minor dip to one of the other support levels as identified above.
Things are a bit different when it comes to the BNB/BTC ratio. It would appear the market shows signs of potentially retesting levels above 0.003794 Bitcoin in the coming hours. A healthy MACD bounce is often promising, albeit such trends can always be short-lived. For now, there are plenty of green candles on the daily chart, but one never knows what the remainder of today will bring.
Ethereum Price Analysis: ETH/USD in a Head and Shoulders Pattern
The Ethereum (ETH) price increased throughout the weekend. However, it did not reach a high above those reached on May 30. Also, it is possibly creating a head and shoulders pattern.
Where may the Ethereum price go next? Keep reading below in order to find out.
Ethereum Price (ETH): Trends and Highlights for June 17
- In a weekly time-frame, ETH/USD is possibly creating an evening star pattern.
- It is currently on the right shoulder of a head and shoulders pattern.
- It is trading inside a short-term ascending wedge.
- Volume has been higher during decreases.
The price of ETH is analyzed at weekly intervals from Nov 2018 to June 2019Since reaching lows near $85 at the beginning of Dec 2018, the Ethereum price has been on an uptrend. It has been following the ascending support line outlined below.
During the week of May 27 – June 03, the Ethereum price created a doji candle — which indicates that there is indecision in the market. This was succeeded by a bearish engulfing candle during the following week. These two candles display the characteristics of the beginning of an evening star, a bearish reversal pattern.
The candle for the previous week was a bullish one. However, it closed below the opening of the bearish engulfing candle of the week prior. This is in stark contrast with BTC, which created a bullish engulfing candle — invalidating the evening star pattern. Therefore, in the case of Ethereum, the possibility of a reversal preceded by an evening star is still in play.
ETH Price: Head And Shoulders
The Ethereum price is analyzed at two-hour intervals. Volume and the 10-, 20-period MAs are added in the second/third graphs.Since reaching a low of $228.5 on May 16, the Ethereum price has been following the horizontal support line outlined below:
Furthermore, it has created a possible head and shoulders pattern (H&S).
The left shoulder is created by highs on May 17 near $280. The head is created by the top of $290 on May 30. At the time of writing, the price is possibly creating the top of the right shoulder.
Also, the candle for June 16 was a bearish doji. When found in an uptrend, it is often a sign of reversal. If the ETH price were to make a bearish engulfing candle on June 17, closing below $260, it would likely create an evening star pattern. This decrease would possibly complete the same pattern in a weekly time-frame.
Furthermore, technical indicators support this decrease.
The volume characteristics have been standard for an H&S pattern. First, the volume in the advance of the left shoulder has been higher than the advance of the head.
Afterward, volume increased during the decline from the head. It remained low during the increase towards the right shoulder. If the price does indeed complete the pattern, the volume should be higher during the upcoming decrease.
Furthermore, the 10-day MA is close to crossing above the 20-day one. This is known as a bullish cross. It goes contrary to the hypothesis that an H&S pattern will be completed. Therefore, if the MAs reject this cross and continue to fall down, it would be the final confirmation that the pattern is going to be completed.
Since June 10, the Ethereum price has been increasing, trading inside an ascending wedge.
The wedge coincides with the right shoulder from the previous section.
On June 16, the ETH price reached highs near $280. A rapid decrease began. The price created a massive bearish engulfing candle. Additionally, this decrease was combined with significant volume. Combined with the fact that the ascending wedge is a bearish pattern, it is likely that the price will begin to decrease.
This decrease would initiate the conclusion of the H&S pattern. If the Ethereum price completes this pattern and breaks down from the horizontal support line near $230, it will likely complete the evening star pattern outlined in the first section.
A high above $290 (the top of the head) would invalidate this pattern.
Facebook, Binance, Chinese Yuan Combine to Boost Bitcoin above $9000
The price of bitcoin (BTC) on Sunday surged above $9,300 to establish a fresh year-to-date high.
The bitcoin-to-dollar exchange rate touched $9,388 at 0600 UTC — its highest since May 30 — on San Francisco-based cryptocurrency exchange Coinbase. The move brought the pair’s net rebound gains close to 200-percent, including a 154-percent since 2019 open alone. It further prompted bitcoin’s market capitalization to jump above $165 billion. At its highest, the cryptocurrency’s net valuation was more than $327 billion.
Bitcoin Price Has Surged 7% in Last 24 Hours | Source: TradingView.com, Coinbase
The steady uptrend in the bitcoin market has coincided with notable volume growth. According to CoinMarketCap’s 24-hour adjusted timeframe, exchanges have hosted about $23.156 billion worth of BTC-enabled trading activities. Meanwhile, the top cryptocurrency trading platforms known to offer “real” transactional data have witnessed about $1.5 billion worth of BTC volume.
At the same time, the bitcoin dominance rate has surged to its 1-month peak of 57.7-percent, now up 2.7-percent from Friday.
Binance US Closure, Facebook
The inexplainable bitcoin price rally has prompted analysts to look for its potential drivers. Many believe that the decision of Binance, the world’s largest cryptocurrency exchange, to stop providing services to US-based traders is what that is causing the bitcoin price boom. The exchange’s very own native asset, Binance Coin, or BNB, today depreciated by more than 6.5-percent against BTC, extending its losses to 22-percent since June 13.
“Pay attention as increased Bitcoin dominance, specifically over 60%, is bullish for BTC holders but isn’t good for most altcoins,” said Josh Rager, an independent market analyst. “With US Binance ban & other exchange delistings, people could be moving into BTC & major market cap coins.”
Meanwhile, others believe Facebook’s upcoming payment cryptocurrency, the so-called Libra, is behind the bitcoin price uptrend. Barry Silbert, the founder, and chief executive of Digital Currency Group, called Libra a “catalyst” that would allow people to learn and adopt digital assets en masse, specifically BTC.
“[Facebook coin] will be remembered as just as important — and transformative — as the launch of the Netscape browser,” he added.
Silbert’s opinion did not sit well with Peter Schiff, a prominent US stockbroker. The gold bull said last week that he considers Facebook’s Libra project “bad news for bitcoin.”
“Facebook,” he said, “will target the very market Bitcoin is counting on for growth, the unbanked in nations with high inflation. Libra will be stable, and much easier and cheaper to use as a medium of exchange than Bitcoin.”
Chinese Yuan against Bitcoin
Whether or not it is relevant, but bitcoin also appears to be reacting to the Chinese Yuan’s depressive performance against the US dollar in the last 30 days.
Chris Burniske, a partner at New York-based venture capitalist firm, Placeholder, found evidence of a strong correlation between the bitcoin appreciation and the yuan devaluation. In 2016, for instance, BTC became one of the biggest gainers in the yuan-enabled markets as investors bought the decentralized cryptocurrency to get around state-imposed capital controls.
Bitcoin Price Historically Appreciated ahead of Yuan Devaluation | Source: Chris Burniske, ARK Investment Management
“The US’s trade war with China, China’s tightening of capital controls to limit funds fleeing the country, and a weakening yuan all added fuel to $BTC’s fire,” said Burniske. “Interestingly then, we have bitcoin satiating appetite for risk in the West and much of the world, while simultaneously serving as a risk-off hedge in China.”
Bitcoin, at the time of this writing, was trading at $9,199.
Bitcoin exhibits similar trends to pre-2017 bull run era; can history repeat itself?
Bitcoin prices have stomped past another major price resistance as the coin crossed the $9000 valuation in the market. At press time, the virtual asset breached past another major resistance of $9200, and the market cap stood at 165.57 billion. Over the past few days, the market trends inclined towards an imminent breakthrough as chart analysis indicated a similar pattern formation that was identical to the one witnessed before the 2017 bull run.
Jayden Crypto, a cryptoanalyst, recently shared an observation on social media; it can be seen that the trend candlesticks in the charts resonated the same characteristics that were evident during 2017. A major bullish candle was engulfing the BTC charts despite the lesser trade volume in the market. However, the Moving Average [MA] of Bitcoin indicated that the recent bull run was on the cards since June 12 as the candles were threading above the MA for the short-term and long-term charts.
Since the price surge exhibited in the month of April and May, Bitcoin continued to consolidate higher in the charts and witnessed very minor corrections over the period of time. The virtual asset had been experiencing sideways movement between $8450 to $6800, since breaching the $7000 range.
Twitter user @ThinkingUSD, a reputed crypto margin trader, also suggested that massive liquation could be on the cards if Bitcoin broke above $8800, which is the market situation at the moment.
Will the 2017 bull run repeat?
Very unlikely, as it can be noticed that the trend identified with the 2017 bull run was pegged with high trade volume with major Bitcoin exchanges and currently the trade volume for Bitcoin was not as significant at press time. Even though similarities are prevalent, the bull run may not live upto the 2017 price rush.
The community speculated that the price might have recently pumped due to traders dumping the virtual assets as Bitcoin had stagnated since the price hike of May. It was also observed that Tether recently minted 150,000,000 USDT and the ecosystem subsequently framed Tether to orchestrate another price pump for Bitcoin.