Over the previous three months, the sentiment in the crypto market turned really bearish. It crashed down in the second half of May and continued to move lower without putting up a fight, which was disappointing for crypto traders who were long on them.
But, nearly a month after the sudden reversal higher, the cryptocurrency market seems to have forgotten all about the bearish period, when everything seemed very gloomy. The war on cryptocurrencies continues in most countries, which are trying to tackle cryptos and bring them down, but it seems like crypto traders/investors are used to it, and they don’t mind much any more.
We did say that cryptocurrencies were going to turn bullish once traders accepted that the war on cryptos by the banking establishment would continue for decades, so they had better get used to it. They seem used to the crackdown now, so it’s not going to be able to kill this new market, and crypto traders are simply doing their thing, and have left their fears of a total market crash behind.
BNB/USD bounced off the 20 SMA on the H4 chart yesterday
One of those cases is the Binance coin, which is surging now, despite the crackdown on the Binance exchange, which we covered on our 2021 Binance forecast. Binance coin continued to make lower lows, even after the big decline in May, falling to $104 in June and July, from a high of $414, and the situation was looking very gloomy. But, after the bullish reversal, it seems like buyers are in total control. We see that the 50 SMA (yellow) was providing support on the H4 chart, then in the last few days, smaller moving averages, such as the 20 SMA (gray), started providing support.
This shows that the trend is picking up further pace. Yesterday we saw a retreat lower, and I was following the price action to see if BNB/USD would retreat to the 50 SMA, where we would have been persuaded to go long. But, the retreat ended at the 20 SMA, just below $400, and it bounced back off that moving average. Now, Binance coin is trading around $30 higher, and it is looking really bullish.
BNB/USD
We missed that chance to buy Binance, so at the next retrace lower, we will probably try to go long at the 20 SMA. The war on the Binance exchange continues in many countries, with some of them trying to make it as difficult for the crypto as possible, and others banning it altogether. But, crypto traders are not paying much heed to that now, as they are getting used to it, which suggests that the bullish momentum will continue for BNB/USD.