Binance Coin (BNB), the native crypto asset of Binance Chain, a blockchain network developed by the world’s largest cryptocurrency exchange, has spiked by 13 percent again, extending the momentum of Bitcoin and the rest of the market.
Within one month, the price of Binance Coin has surged from $7.8 to $15.31 by more than 96 percent against the U.S. dollar.
Off of its recent price movement, Binance Coin overtook Tether, the most dominant stablecoin in the cryptocurrency market, to become the 7th most valuable digital asset in the market.
In the week before, Binance Coin surpassed TRON and Stellar for the first time, achieving a market cap of over $2 billion.
Fueled by the momentum demonstrated by major crypto assets in the likes of Binance Coin and Litecoin, Bitcoin has recovered to $3,900 and is en route to enter the $4,000 region.
Throughout the past month, many traders have emphasized the importance of the $4,200 resistance level for Bitcoin.
Bitcoin cleanly broke out of $4,000 in February but struggled to test the $4,200 level and as soon as BTC came close to breaching out of $4,200, it plunged below $3,700.
Following a plunge in price of Bitcoin from $4,200 to $3,700, economist Alex Krüger explained on February 24:
Today’s crypto dump was a simple correction. Prices had just gone up vertically for 16 days without a pullback. Take ETH for example: +38% without a pullback. Levered longs piled up. People FOMOed. BTC reached the first strong resistance ($,4200) and gravity kicked in.
Hence, while an upside movement above $4,200 could open Bitcoin to a potential rally above the $5,000 mark until the $4,200 level is broken, the asset remains vulnerable to a pullback to the mid-$3,000 region.
On the technical side, according to a cryptocurrency technical analyst with an online alias “Mayne,” Bitcoin has found strong support at $3,700.
If the dominant cryptocurrency manages to break out of the $3,900 to $4,000 range in the near-term, the analyst sees the asset engaging in an extended upside movement, potentially to $4,400.
“BTC found support at the yearly open and is now rejecting from the breaker I wanted to short at, ended up being impatient and shorting lower. Above the breaker, BTC looks good for $4200-$4400. If we reject and lose $3700 I wouldn’t want to be long anything,” the analyst explained.
But, as CCN.com reported throughout the past two weeks, the strong performance of major crypto assets and tokens have lifted the pressure on Bitcoin.
Su Zhu, the CEO of Three Arrows Capital, stated that the last time Litecoin was valued at $57, Bitcoin was $6,500.
Cryptocurrencies have begun to show independent price movements and several assets have recovered to November 2018 levels.
The surge in the price of major crypto assets like Litecoin also portrays the confidence of investors in the market, despite the uncertainty surrounding the short-term trend of BTC.
3 months in, 2019 has been a subpar year so far based on the prices of crypto assets.
However, in terms of development, institutionalization, and adoption, the cryptocurrency sector has seen more progress in the past 3 months than in 2018.
Investors are seemingly becoming more confident in crypto assets that are continuing to build and aggressively demonstrate progress in innovation and development.
One common similarity amongst coins like Binance Coin and Litecoin that have recorded substantial gains against both Bitcoin and the U.S. dollar is that they have showcased product launches, integrated scalability and privacy solutions, and an overall increase in adoption.
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Last modified: June 14, 2020 11:11 AM UTC