After the announcement of the billion dollar mega financing plan to foster the emergence of the BSC ecosystem, Binance has just released another piece of news that should be of even more interest to BNB investors.
Indeed, the largest crypto broker in the market announced in a note to its investors that it would withdraw (burn) the equivalent of approximately $ 639 million from BNB. This new burn-out is part of the logic of BNB scarcity through a process of eliminating a certain number of tokens from Binance Coin each quarter.
This is actually Binance Coin’s 17th deflationary burnout process on the market. The most recent took place last July 20. 1,296,728 tokens for the equivalent of 400 million were withdrawn from the market during this burn.
A burn in a bullish market background
Binance Burns 639 million BNB.
Unlike the last elimination of tokens, this one comes in a context much more favorable to a rise in BNB. Globally, cryptocurrencies are on the rise. For its part, Binance Coin is under a flood of optimism after the announcement of the financing plan.
On the other hand, the burn of 400 million tokens occurred in a context where the price of BNB was down (Daily) by 6.83%. Cryptocurrencies were still in the grip of the May crash. Worse, on July 20, many projects fell to their quarterly low before recovering after the B World event that caused the recovery in the summer.
However, this new burn is part of a completely different context with the price of BNB which shows a daily increase of 3.97%. Better yet, its BNB value has already grown by 18.4% in those 7 days.
BNB breaks its Daily triangle: Next target at $ 800
BNB chart – Source: @ TagadoBTC / Twitter
Currently, BNB’s price is at $ 479 but far behind its May 10th ATH. Its course is at less than 30.2% of its highs. However, a chart pattern indicates that an upward recovery is imminent in the coming days and may even exceed the multi-year ATH.
It is in fact an ascending triangle structure which would be the basis of this supposed bullish extension of the price of the BNB. The chartist figure was shared by French trader and expert @TagadoBTC on twitter. The analyst expects BNB’s next quarterly breakpoint to be $ 822.
From a theoretical point of view, the academic journal, investopedia tells us that an ascending triangle is:
An ascending triangle is generally considered to be a continuation pattern, which means that the pattern is significant whether it occurs in an uptrend or downtrend. Once the break-out of the triangle occurs, traders tend to aggressively buy or sell the asset depending on the direction in which the price has broken out.
See the graph shared by @TagadoBTC and the current BNB price, the daily breakout is confirmed. This which a priori meant that the BNB should continue with the bullish pattern.
The downside is that the basic element of this technical scheme, namely the instant reaction of traders, does not quite live up to this target at $ 800. Even if the daily trading volume is up 44%, the weight remains small. There are only 2.10 billion BNB traded during the day.
So the next two or three days of trading will confirm the achievement of $ 800. For now, the verdict is simple: BNB will be bullish after the news. But how far can he go? Answer in the next sessions.
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