Binance Coin (BNB) was trading in an extremely positive zone on Wednesday as its top rival bitcoin kept underplaying investors’ bullish expectations.
The eighth-largest cryptocurrency by market cap surged by up to 11.73 percent to establish a session high of 2,289 sats. It attracted a similar capital from the fiat market, rising by 11.12 percent against the US dollar or US dollar-denominated crypto-assets. At the same time, it’s market cap touched a sessional peak of $2.734 billion.
Binance Coin (BNB) surges by more than 11 percent against the US dollar and Bitcoin | Image credits: TradingView.com
The gains in the BNB market closely followed the launch of Binance’s peer-to-peer trading platform in China. The Malta cryptocurrency exchange, which backs the BNB asset as its native asset, announced yesterday that it had opened trading of bitcoin, ether, and USDT against Yuan. The declaration arrived atop China’s ban on the trading of cryptocurrencies, catering to those who wanted to remain invested in the non-sovereign assets nevertheless.
Binance CEO Changpeng “CZ” Zhao later claimed that they were looking at “significant P2P trading volumes,” connecting the news to the rise in BNB price. The cryptocurrency touched its session high right after CZ’s statement. An hour after that, he admitted that Binance P2P trading services are compatible with WeChat and AliPay, two of China’s leading
However, CZ later clarified that Binance has not partnered with either of those firms but is merely enabling them in P2P transactions for payment.
“Some confusion by some news outlets,” stated CZ. “Binance is not working directly with WeChat or Alipay. However, users are able to use them in P2P transactions for payment. Still not a small feat. But words/meaning get twisted as they are passed around.”
Both WeChat and AliPay have warned users about not using its services for selling and purchasing cryptocurrencies.
Bullish Calls for Binance
As active catalysts assisted BNB in achieving a 19-day high against bitcoin, market analysts switched their bias for the cryptocurrency to the upside.
Jacob Canfield, for instance, noted that BNB was trading near the apex of a sizeable Falling Wedge pattern. A Falling Wedge is a bullish reversal indicator, wherein an asset forms lower highs and lower lows – and breaks to the upside upon reaching the pattern’s apex. Canfield stated that he is buying BNB for the very same technical reason.
The Crypto Dog believed in the same outcome, as reflected in his tweet below:
If the Falling Wedge analysis is valid, BNB could rise towards 45,393 sats – a 113 percent increase from the price at the time of this writing.
BITCOIN VOLATILITY DWINDLING, HAS BTC TAKEN AN EARLY VACATION?
Bitcoin and cryptocurrency markets are slowing down. There has been very little activity over the past week as volumes and volatility decline. Technical indicators are also lining up which could indicate a larger move is imminent or is BTC on vacation for the rest of the year?
BITCOIN SLOWING DOWN
This may not be such a bad thing. One of the points bitcoin detractors always make is that it is too volatile to be used as a daily currency. This much is true if a cup of coffee is going to be 20% cheaper ten minutes later you’re not going to buy one in BTC right now.
Over the past year or so these massive price swings have decreased in amplitude and it appears that bitcoin has entered a low volatility regime.
Day traders seeking quick bucks have had to take a break as movements are minimal at the
This type of action often preludes a bigger move and technical indicators such as Bollinger bands squeezing are also indicative of such.
This slowing of momentum has happened across the board, not just on bitcoin markets. Ethereum volatility is also at low ebb, falling to levels not experienced since 2016 as noted by Coin Metrics.
It could just be that time of year when traders take a break and FOMO is as thin as the first fall of winter snow. If this is the case then markets will remain flaccid until sometime next month.
Bitcoin News Today – Headlines for December 14
- Investor believes round numbers are very important in BTC markets
- BTC crossing $10k is important says investors and analysts
- Crossing the $10k mark in the near-term will ensure that Bitcoin’s price action is positive.
Bitcoin News Today – Bitcoin investors have always gravitated towards round figures. According to one top crypto investor and commentator, the importance of round numbers can’t be overstated especially in a nascent market. This implies that after reclaiming the $10,000 mark, the macro price scales will ensure that Bitcoin can go higher and higher until it reaches a new round number.
The Importance of Round Number Prices in Crypto
During a recent interview with Luke Martin, Three Arrows Capital Su Zhu said gave his opinion on why round numbers are essential. According to Zhu round numbers are important in the crypto market because the leading crypto topping the $10,000 mark will be an important time in terms of forcing a good price action. It isn’t only Zhu who is of the view that $10,000 is of great importance for Bitcoin and the entire crypto space.
Earlier in the year, Tom Lee, Fundstrat Global Advisors’ resident crypto analyst released his analysis for BTC by his firm. His analysis implies that if the price of BTC reaches and crosses the $10,000 level it could mean
Another platform that agrees with Zhu’s view is Bloomberg. Bloomberg wrote in November of this year about the importance of the $10k barrier and how essential round figures with four and five digits are. The platform said Bitcoin faces a solid resistance point at the $10,000 area. The coin will have to break this barrier if there is to be a confirmation and continuation of meaningful gains.
Is the $10k Mark Attainable for Bitcoin?
Speaking about Bloomberg and BTC getting to the $10,000 mark, one analyst at Bloomberg believes that it’s just a matter of time before the number one crypto tops that key position. The analyst, Mike McGlone, who is the senior commodities strategist at Bloomberg, revealed in his monthly market update that he believes that Bitcoin will top the essential $10,000 resistance point. He said as gold rallies, Bitcoin should rally. While Gold is currently trending below BTC amidst the trade war, the macro picture may begin to favor gold and Bitcoin as we head into 2020.
Stratis Will Increase Rapidly If It Moves Above 4500 Satoshis, Predicts Trader
Stratis has been trading in a range since August 2019. This movement has the characteristics of the consolidation phase, after which a new bullish market cycle is expected to begin.
The trading range of this consolidation has a magnitude of 40%, and the price has tested both the resistance and support areas several times. At the time of writing, it was moving upward towards the resistance area.
Additionally, he suggested that a breakout above the 4500 satoshi resistance area would probably accelerate the rate of increase.
Let’s take a closer look at the price and see how likely this is to happen.
First, the Stratis price reached the long-term support area at 3000 satoshis in August 2019.
This was almost an all-time low, coinciding with the lows reached in 2016, which was the bottom before the 2017 upward move.
Additionally, the RSI reached an all-time low value of 23 during this time and created bullish
This suggests that this is a very suitable level to make a low and initiate a reversal, as we have suggested in our previous article.
Looking closer at the movement, we can see the trading range, consisting of two support and one resistance area.
The main support area is at 3250 satoshis, where the double bottom was created. This is followed by the minor support area at 3850 satoshis. The minor support coincides with the 100-day moving average (MA). The price has flipped it as support. The price fell inside it twice and began an upward move each time.
The resistance area is found at 4500 satoshis and the price has not reached it since November 30.
On December 11, the Stratis price broke out above the descending resistance line that had been in place since the beginning of December.
The breakout transpired with significant volume, increasing the validity of the movement. Afterward, the price returned to validate the descending resistance line, a common movement after breakouts.
To conclude, the Stratis price is likely consolidating before beginning a new market cycle. A decisive breakout above 4500 satoshis is expected, confirming that the new cycle has begun.