Asset Traded - Binance Coin
For today's trade, I chose the BNBUSDT pair which has the Binance Coin cross. BNB is the native token of the Binance exchange, which ranks as one of the major crypto exchanges in the world. Various crypto-related activities like an exchange, trading, staking, etc are hosted on the Binance exchange platform. BNB is used in many ways within the Binance exchange, one of which is as payment for transaction fees. Binance allows you to convert non-withdrawable balances to BNB and use them as transactions fees.
The BNB coin and Binance exchange were founded by Changpeng Zhao also referred to as CZ in July of 2017. CZ is a known figure in the cryptocurrency ecosystem based on his contribution and commentary on the general acceptance of cryptocurrencies as payments. BNB can be traded on Binance, Huobi, KuCoin, etc.
Binance launched the BNB coin in 2017 under the Ethereum network as an ERC-20 token but later moved to its native network, Binance smart chain network (BSC) in 2019. The initial coin offer was held on the exchange with BNB price starting at $0.11. The massive leap in the price of BNB occurred in 2021 when the unit price of BNB raised from around $40 to its peak price of $646.82 on the 7th of May 2021.
Binance's cryptocurrency BNB is ranked 4th on coinmarketcap's official website and as of the time of this publication, it has a unit price of $333.75, a market capitalization of $55.1B and fully diluted market capitalization of $55.1B. BNB has a market dominance of 3.49%, which is calculated based on traded volume and supply of the coin, the volume traded in the last 24 hours is $2.4B and a circulating supply of 165B BNB.
Trade Analysis
I analyzed the BNBUSDT chart using the tradingview platform. I analyzed on a short-term basis for me to capitalize on the intraday movement of price. I combined the Williams %R and the EMA indicators with price action to capitalize on a Sell position via margin trading on the Binance exchange.
Looking at the BNBUSDT chart on tradingview, I observed the following;
BNBUSDT 15 MINS CHART
Following the trend movement, it is observed that the overall trend is bearish which was catalyzed by the market reaction to the conflict between Ukraine and Russia, I noticed that the Williams %R indicator line crossed below the -50 midpoint, and also price crossing and trading below the 20 EMA line, which both are indications of possible bearish movement continuation. Observing the chart, after an impulsive bearish move, the price stalled making sideways movement for hours. With the high bearish momentum in play, I anticipate further down movement of price.
I waited for the formation of more bearish candles signaling the presence and willingness of sellers in pushing the price downward. I executed a sell order at $332.590, with stoploss placed at $338.0 and take profit placed at $323.0. The risk to reward on the trade was executed at ratios of 1:1.5.
I executed the trade via futures margin trading on my verified binance exchange account, using the leverage of 2x.
After several minutes of waiting, I observed that the preceding development of price moving in the opposite direction, as price crossed above the EMA line and the Williams %R crossed above the -50 midpoint. My stoploss was hit after that.
I reentered the sell position at $336.900when the price rejected the EMA line and the Williams%R crossed below the -50 midpoint. With stoploss placed at $338.50 and take Profit placed at 324.0.
I managed to close the entire position with a 1.42% profit.
Based on the above trade, there are no suitable recommendations as the trade was based on short-term analysis and margin trade.
Thank you team fredquantum-kouba for this opportunity.
Hello @beckie96830,
Thank you for choosing our team to participate in the 1st week of Season 6 of this trading competition, hoping that you will make gains during this period, you deserve a Total|7.5/ 10 rating, according to the following scale:
My opinion on your choice of pair:
Considering the market trend, BNB is sure to explode again, before long. Its 3rd position on the list of crypto currencies confirms its strong potential for explosion. BNB is a good alternative to Bitcoins or Ethers due to its not so high value. Being still accessible, buying Binance Coin now is a great idea to profit from the imminent explosion of its value.
My opinion on your trading style:
As usual you are faithful to the combination of Williams %R and EMA indicators to determine the market trend in order to achieve gains through future margin trading with leverage x2 and this is achieved with a profit of 1.42%.
We thank you again for your effort and we look forward to reading your next article.
Sincerely, @kouba01
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