BNB becomes the silent winner in a bleeding crypto market

According to market analyst Linda Zheng, Binance Coin’s (BNB) year-on-year gains surpassed most top-ranking cryptocurrencies by market capitalization. BNB has experienced an uptick of over 58% since the end of February 2024, only falling short of Bitcoin’s 70% price uptrend in the same period.

In a long X thread published on Tuesday, Zheng noted that since the launch of Bitcoin spot exchange-traded funds (ETFs) on January 11, 2024, BNB’s highest price rally took its price up by 161%, outperforming Bitcoin, which managed to garner a 133% uptick.

Both cryptos have reached all-time high values in the last two months, of $788 and $108,780 respectively, but BNB gave investors more gains than BTC.

BNB exudes resilience in bear and bull cycles

Linda Zheng explained how BNB was resilient to selling pressures in recent bear and bull market cycles, as it could withstand market downturns compared to other coins, particularly Ethereum.

“BNB, which has been at the forefront of the industry market value for many years, not only has a compound interest return that exceeds the return of Bitcoin, but also has a more resistant performance in the bull-bear transition cycle. If there is a myth in the crypto market that surpasses Bitcoin, then BNB must be one of the hidden winners in the myth,” she surmised.

The market analyst shared data of the last bear market from 2021 to 2022, where BNB experienced a smaller maximum drawdown of 73.29%, while Bitcoin and Ethereum recorded deeper declines of 77.32% and 81.68%, respectively.

BTC to BNB price rise comparison. Source: Coinmarketcap.

Zheng mentioned that it only took 237 days for BNB’s price to stabilize its downward price momentum, shorter than Bitcoin’s 517-day recovery period.

During 2024’s bull market cycle, BNB seemed to survive several market conditions that affected coins like Ethereum and Solana, including Grayscale’s GBTC sell-off in January, the Federal Reserve’s hawkish stance in March, and the anticipated Mt. Gox repayments in July, last year.

She described the biggest bearish tests that occurred in August 2024, when a liquidity crisis pushed the crypto market into a state of high volatility. BNB experienced an 18.40% decline at the time, slightly more than Bitcoin’s 15.70% drop, but fared better than Ethereum, which is still counting losses as of today.

Zheng concluded that while Bitcoin is often referred to as the “gold” of the crypto world, BNB has become more than just a transactional “fuel” the crypto community has coined it to be.

“BNB is the only token with deflationary characteristics among the top ten mainstream digital assets in terms of market value. Its scarce value is better than Bitcoin.”

Will the bullish trend continue?

BNB’s price is currently consolidating after its rapid ascent, surviving the $590 price level drop that analysts had expected to happen by the start of this week. According to TradingView data, the token’s immediate resistance currently sits at $669, while strong support has formed at $625.

The 9-day exponential moving average (EMA) at $653 acts as the coin’s short-term resistance, whereas the 200-day EMA at $625 provides a support base. The Moving Average Convergence Divergence (MACD) indicator shows bearish momentum on the daily chart, though lower timeframes could signal a possible reversal in the coming weeks.

Short-term traders may prefer using the range scalping strategy of buying near $635 and selling near $655, with stop-loss levels set below $625. If volatility picks up, breakout strategies suggest going long above $670 with a target of $700, while a short position below $620 could aim for $600. Intraday traders might also watch the 9-day EMA for quick bounce trades.

Looking ahead, the Binance coin remains in a “neutral but bullish” structure, though a decisive break below $625 could signal a shift in momentum toward the downside. On the upside, reclaiming the $670 level could open the door for further gains above $700.

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