By CCN: Binance, the leading cryptocurrency exchange in terms of volume, suffered a massive blow on May 7 when hackers ran away with 7,000 bitcoins. At the time, the total haul was valued at roughly $40 million. Binance CEO Changpeng “CZ” Zhao was quick to reassure…
By CCN: Binance, the leading cryptocurrency exchange in terms of volume, suffered a massive blow on May 7 when hackers ran away with 7,000 bitcoins. At the time, the total haul was valued at roughly $40 million. Binance CEO Changpeng “CZ” Zhao was quick to reassure their user base by stating that the exchange will cover the damages through the Secure Asset Fund for Users, or SAFU. Nevertheless, some Binance Coin (BNB) holders panic-sold under the assumption that CZ would dump BNB to pay for the damages. They were wrong. In this article, we show how Binance Coin remains unfazed by the recent 7,000 bitcoin hack.
On the day of the hack, BNB plunged by 6.89% against USDT as it opened at 22.2018 and closed at 20.6602. The bleeding continued until May 10 when the market dropped to as low as 18.30 for a total loss of 17.57% due to the hack. Since then, the BNB market has been incredibly bullish.
A look at the daily chart shows that the pullback from the hack was nothing but a setup for a big comeback. Bulls resumed the parabolic run on May 10 and have not looked back since. On its way up, it converted former resistance of 24 into support. On May 25, Binance Coin even made a fresh high against Tether at 35.4888.
From the low of the hack, BNB is up by 90% against USDT. More importantly, it looks like the ascent is not going to stop soon.
Binance Coin performed poorly against bitcoin following the security breach. On May 7, it opened at 386,230 satoshis (0.0038623) and closed at 353,680 satoshis (0.0035368) for an 8.43% drop. The plummet continued until May 11 when the market nosedived to 276,450 satoshis (0.0027645). All in all, Binance Coin suffered a 28.42% loss against bitcoin due to the theft.
In the chart above, you see how the bulls used the drop to convert former resistance of 280,000 satoshis (0.0028) into support. Once that level was cemented, Binance Coin went on a strong V rally and climbed as high as 436,050 satoshis (0.0043605) on May 24. That’s a staggering growth of more than 57.73% from the low of 276,450 satoshis (0.0027645) on May 11.
In addition, Binance Coin appears to be forming a large symmetrical triangle on the daily chart. This pattern suggests a continuation of the current bullish trend. If our read is correct, the crypto might go as high as 500,000 satoshis (0.005) in the next few weeks.
The hack may have stalled Binance Coin’s run against Tether and bitcoin. Nevertheless, the crypto remains unfazed. It has not only managed to recover all losses, but it also skyrocketed against both USDT and BTC. Bears should closely reconsider their position or risk getting slaughtered.
Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.
This article was edited by Gerelyn Terzo.
Last modified: January 10, 2020 3:25 PM UTC