When it comes to trading, I don't usually trade every day since
it takes a lot of time and effort to follow a "clear trend", in
especially in cryptocurrencies, because we all know the extreme
volatility. For this reason, there are many people who prefer to hold medium long-term and take part of its benefits (remember that not all goes up forever), but sometimes we find some bullish momentums to enter a great trade.
Well, I have been controlling some of the cryptocurrencies that are
are within the top 10 but specifically the one that market capitalization is ranked 3rd in this ranking, as you all know this is BNB, Binance's governance currency.
Binance Coin was established as the utility currency of the large exchange and we have seen its great flood since last year. It has a great team led by Changpeng Zhao, a team that is constantly working for the continued evolution of the project.
Just two days ago Binance announced that it was going to launch a fund of 1,000 millions of dollars to accelerate the adoption of the crypto industry.
After this news the impact on the price was significant, and it is
which increased 18% from $ 392 to $ 460. Must take into account
that the token is still at 50% of its ATH.
As you may know, the BNB token has all its supply in circulation and in addition to that it is a deflationary token which over time
it will make it more scarce and valuable.
Yesterday I decided to enter a long trade since the price had
created what is known as shoulder-head-shoulder which was in the
exact moment of rupture.
But this was not the only alert that I could see in the graph, if we draw two lines of trend joining the minima and the maximums in the daily graph we can see how it has gone forming a symmetrical triangle which each time it had less space to move. To be able to know where to take benefits compared to the first figure, you have to trace a line from the neckline to the head bottom of this figure and place it just above this neckline, which would not give a target of $ 560-580. I always say that it's important to place a stop loss below the previous low, and if in this case has entered the operation well and you want to stay quiet, you can also place a break even (adjust the SL to entry price). It is possible that some say that I have done this analysis waiting for this to happen but it is not, and as I do not like say things without showing them here is the trade in question.
There is something interesting to take benefits in the medium term (I would say that even before the end of this 2021). When the ruptures of these symmetric triangles comes, in order to know where we will have our target you have to draw a line from the opean are of the triangle just at the beginning to the ground of it. This is something more ambitious but I think it's programmed. In this situation the price would indicate a breakout that would trigger a rally towards $ 1000, close to 100% from the current moment and 45% from his ATH, nothing unreasonable for what we have left of bullrun.
And you? do you have BNB? Do you trade intraday or only sporadically like me? Let me know in the comments
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