Binance Coin (BNB) retained its bullish bias this Wednesday after witnessing its worst downside corrections since March last year.
The third-largest cryptocurrency, which serves as a utility token on Binance and many of its outlets—including a decentralized exchange, surged by up to 52.85 percent from its sessional low of $184.99. The upside retracement followed a two-day sell-off that wiped more than $12 billion off its realized market capitalization.
BNB’s climb largely coincided with a broader recovery across all the top-cap crypto assets. That included the benchmark cryptocurrency Bitcoin, which fell 22 percent from its record high levels above $58,000 but retraced almost 15 percent of those losses in the last 24 hours. Ethereum, the topmost crypto asset after bitcoin, also surged by up to 26.40 percent from its sessional low of $1,356.
On the whole, the cryptocurrency market attracted about $250 billion back into its turf.
Crypto Demand
Alternative cryptocurrencies tend to tail Bitcoin’s gains and losses. Late Tuesday in the US, payment service company Square revealed that it had purchased $170 million worth of Bitcoin at an average rate of nearly $52,000. The news helped the cryptocurrency avoid a steeper sell-off—having been under one since Monday.
More bullish tailwinds for Bitcoin came from Tether’s lawsuit settlement with the New York District Attorney and the Federal Reserve Chairman Jerome Powell’s dovish testimony before the Senate Banking Committee on Tuesday.
As usual, a renewed appetite for Bitcoin helped raised the demand for tokens that facilitate its trading on exchanges. BNB, which traders use as fees on the Binance exchange, may have surged under the said bias.
According to data provided by Messari, centralized exchanges climbed by more than 60 percent in the previous 24 hours.
BNB Forms a Bull Flag
The wild upside move left BNB in a comfortable state to pursue a bullish breakout.
The token’s downtrend from its local top formed a sequence of lower highs and lower lows. Arranged together, the retracement points formed what appears like a bull flag, a bullish pattern that points to upside continuation after an asset breaks over its upper trendline.
Ideally, the breakout’s length equals the size of the previous upside move. In Binance Coin’s case, the so-called flagpole’s height is about $250, which puts BNB/USD en route to $500 in the medium-term.