Trader Cautions Against Binance Coin (BNB)
A well-known trader, Altcoin Sherpa, is advising caution when it comes to Binance Coin (BNB), which is the native token of Binance Smart Chain and a utility token on the Binance crypto exchange. Altcoin Sherpa believes that BNB is currently “hanging on for dear life” and suggests staying away from it in the short term. While he thinks that Binance itself is likely fine, he emphasizes the importance of being cautious during uncertain times.
Lack of Momentum and Support for BNB
Altcoin Sherpa’s analysis shows that BNB has been struggling to gain upward momentum. Since May 2022, it has failed to break through the resistance level at around $330 multiple times. Additionally, BNB has recently broken below a two-month-long range, with the next support level being over 10% below its current price. As of now, BNB is trading at $210.
Bullish Outlook on Bitcoin (BTC)
Altcoin Sherpa expresses optimism about Bitcoin in the near term. He believes that BTC will reach $28,000 overall and points to positive indicators such as decent four-hour exponential moving averages in the short term. He expects another push-up for Bitcoin. At present, Bitcoin is trading at $26,717.
Ethereum’s Influence on Altcoins
Altcoin Sherpa suggests that Ethereum’s performance against Bitcoin will play a significant role in determining the next moves of altcoins. He anticipates a potential altcoin run by the end of this year but prefers to see ETH/BTC decrease slightly before making any moves. Ethereum currently holds the position of the second-largest crypto asset by market cap.
Hot Take: Trader’s Warning and Updated Outlook
Altcoin Sherpa warns investors to approach Binance Coin (BNB) with caution due to its lack of upward momentum and support. He advises staying away from it in the short term. On the other hand, he remains bullish on Bitcoin (BTC), expecting it to reach $28,000 overall. Regarding Ethereum (ETH), Altcoin Sherpa believes that its performance against Bitcoin will determine the future of altcoins and suggests waiting for a potential altcoin run by the end of the year. It’s essential to exercise caution and stay informed during these uncertain times in the crypto market.
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