Looking for Patterns
It’s the 1st week of the year & everyone seems to have a bounce in their step. And maybe in some cases that’s carrying over into price action. (Please do your own research; this is not financial advice.) One coin loosely reflecting this phenomenon is Binance Coin (BNB), which has rallied 40% in the past month. You want to be careful about over-generalizations but as the crypto mood goes, so goes BNB, perhaps. And possibly vice versa. Practically speaking, this makes sense: as volumes rise amid higher prices, Binance makes more money. My recollection is in late December we saw lousy price action on crummy news (the BCH fork drama, regulatory fears, stock market & China woes) and – lo and behold – BNB plunged two 12-month lows in lockstep with BTC. As a trader I always looked for patterns. I don’t believe in silver bullets not I do I believe BNB is the “solution”. It’s just an observation & many other coins have rallied since early December, too. The industry has been been battered around for months and the 4th quarter was particularly painful. “Crypto Winter” became the second biggest cliche on social media behind #NoMoreTrump (I kid.) But for now, there’s a bit of a thaw. If crypto exchanges are doing well again, maybe it’s a sign of good things to come. Emphasis on: “maybe”.