Market analyst Linda Zheng points out that Binance Coin (BNB) has been a real standout performer. In fact, its gains over the past year have outpaced most of the top cryptocurrencies by market cap. To put it in perspective, BNB has jumped over 58% since the end of February 2024, and while impressive, it was just slightly behind Bitcoin’s even bigger 70% surge in the same period.

In a detailed discussion on X (formerly Twitter) this Tuesday, Zheng highlighted an interesting trend since the launch of Bitcoin spot ETFs on January 11, 2024. She noted that BNB’s most significant price rally since then saw its price soar by 161%. Interestingly, this impressive climb actually outperformed Bitcoin itself, which saw a respectable 133% increase.

Over the last couple of months, both cryptocurrencies reached new all-time highs, hitting $788 for BNB and $108,780 for Bitcoin. Despite these highs for both, Zheng’s analysis suggests BNB actually delivered more profitable returns for investors compared to BTC.

BNB exudes resilience in bear and bull cycles

Zheng further elaborated on BNB’s resilience, explaining that it has shown a strong ability to weather selling pressures in both recent bear and bull market cycles. According to her analysis, BNB demonstrated a greater capacity to withstand market downturns when compared to other cryptocurrencies, especially Ethereum.

In Zheng’s own words, “BNB, which has been a leading cryptocurrency by market value for years, not only offers compound returns that beat Bitcoin, but also demonstrates greater resilience during market shifts from bull to bear. If there’s a dark horse in the crypto world that could potentially outshine Bitcoin, BNB must be considered a strong contender.”

To back up her point about resilience, the market analyst provided data from the last bear market between 2021 and 2022. During this period, BNB saw a maximum price drop (drawdown) of 73.29%. While not immune to the downturn, this was less severe than Bitcoin’s 77.32% and Ethereum’s even steeper 81.68% decline.

Zheng further pointed out the speed of recovery. She noted that BNB took only 237 days to regain stability after a price downturn, significantly faster than Bitcoin’s 517-day recovery.

Looking at the bull market of 2024, BNB demonstrated its robustness by navigating various market challenges that impacted other cryptocurrencies like Ethereum and Solana. These included events such as Grayscale’s GBTC sell-off in January, the Federal Reserve’s hawkish policy announcements in March, and the anticipation surrounding Mt. Gox repayments in July.

Zheng highlighted August 2024 as a particularly tough period, noting that a liquidity crisis triggered high volatility across the crypto market. During this major downturn, BNB experienced an 18.40% price drop, slightly more than Bitcoin’s 15.70% fall. However, even in this bearish scenario, BNB outperformed Ethereum, which experienced more significant and longer-lasting losses.

In her overall assessment, Zheng concluded that while Bitcoin is commonly seen as the “gold” standard of cryptocurrency, BNB has evolved beyond its initial perception as merely transactional “fuel,” as it’s often been described within the crypto community.

She further emphasized this point by stating, “BNB is unique among the top ten mainstream digital assets by market value as the only one with deflationary properties. This inherent scarcity gives it an edge, arguably making it even more valuable than Bitcoin in this regard.”

Will the bullish trend continue?

After its impressive climb, BNB’s price is currently in a phase of consolidation. It has successfully weathered an expected drop to the $590 price level earlier this week, according to analysts. Looking at data from TradingView, we can see that BNB’s immediate resistance level is around $669, with strong support established at $625.

Further technical indicators reveal that the 9-day exponential moving average (EMA), currently at $653, is acting as short-term resistance for BNB. Conversely, the 200-day EMA at $625 is providing a solid support level. Analyzing momentum, the Moving Average Convergence Divergence (MACD) indicator on the daily chart suggests a bearish trend. However, looking at shorter timeframes, there are potential signals of a reversal taking shape in the coming weeks, offering a glimmer of hope for bulls.

For short-term traders looking to capitalize on these movements, a range scalping strategy might be appealing. This would involve buying near $635 and selling around $655, with stop-loss orders placed just below $625 to manage risk. Should volatility increase, breakout strategies could come into play. A long position above $670, aiming for a $700 target, could be considered. Conversely, a short position taken below $620 could target a $600 level. Intraday traders might also find opportunities for quick “bounce” trades by closely monitoring the 9-day EMA.

In conclusion, the outlook for Binance Coin remains “neutral but bullish.” However, it’s crucial to watch the $625 support level. A clear break below this point could indicate a shift in momentum towards a bearish direction. On a more positive note, if BNB can successfully reclaim the $670 level, it could pave the way for further upward movement, potentially pushing prices beyond $700.

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Source: cryptopolitan.com