Bearmarket… not for everyone ?- Cryptocurrencies are experiencing a very complex year 2022. The two largest caps, Bitcoin and Ethereum, lost significant technical levels and entered a downtrend for several months. Ethereum could take advantage of The Merge to regain value, and players have their eyes on Vitalik Buterin’s protege. Still, they would do well to take an interest in the assets of the exchanges, because some of them look promising.
This analysis of the price of exchange tokens is offered to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.
The token exchange index is showing strength
Exchange platforms can be interesting in the medium to long term, because they are structures that have significant income thanks to transaction fees paid by traders. To understand, the fortune of Changpeng Zhao (CEO of Binance) is estimated at 65 billion dollars and that of Sam Bankman-Fried (FTX), is estimated at 24 billion of dollars.
The token exchange index is a index created by FTX gathering the following tokens: BNB (Binance), FTT (FTX), LEO (Bitfinex), HT (Huobi), OKB. You will find additional information directly on their site. The index makes it possible to assess whether token exchanges are on the rise or whether their token is facing difficulties. Here is the index chart:
On a weekly basis, the index is bullish primary trend and the support built in February and then May 2021 still holds. Bitcoin and Ethereum saw their weekly support give way so you understand the situation. In addition, the course is under the bearish trendline and that makes the course brittle.
The current situation is more than honorable. In fact, the course has bounced back on the weekly support and at the level of the reloading area (0.618-0.786 Fibonacci retracement). We can imagine a bigger rebound that would allow the price to reach the bearish trendline. It is essential that buyers defend the support to remain in the bullish primary trend.
The momentum is on a key point and could be done dismiss. On the other hand, if the resistance gives way, it could give strength to the buyers.
BNB and FTT hold their own in this bearmarket
Binance Coin outperforms Bitcoin
Binance Coin is very solid. It also keeps the support weekly:
Ethereum and Bitcoin are often talked about as the most important assets in the market. Bitcoin is thesafe-haven asset cryptocurrencies and Ethereum is the altcoin leader. The two mastodons have lost their support weekly, but the BNB keeps it. In the end, the BNB is in a bullish primary trend and in a weekly range Between $210 and $510. The course is approaching the bearish trendline and this could push the price back at first.
The momentum broke the bearish trendline and it could give buyers strength. Whatever happens, buyers should hold the support on a weekly basis. To see the BNB soar again, it will be necessary to extricate oneself from the bearish trendline as well as the resistance weekly. There is still some way to go for the fifth capitalization of the crypto market.
When we have the Bitcoin curve in mind, and look at that of Binance Coin, we can easily imagine that BNB outperforms BTC. Let’s take a closer look:
Indeed, the Binance Coin outperforms Bitcoin. The price even came out the top of the bullish right triangle. It’s a continuation pattern and so it looks like the BNB still has some under the pedal. In the coming weeks, the support could be tested, buyers will have to push not to break this support.
In 2021, BNB was one of the first to strongly outperform Bitcoin. The situation is different, as the king of cryptocurrencies is currently suffering, but the BNB could surprise many if it continues to be solid.
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The FTX token is among the most resilient altcoins on the market
The FTX platform token has nothing to envy to its competitor:
The price of FTT is very close to that of BNB from a technical point of view. He is in a bullish primary trend and the course retained the support weekly during the sharp fall from April 2022. Despite this, the FTT is in a tidy between the upper limit at $52 and the lower bound at $25. The course will remain brittle as long as it is under bearish trendline.
The momentum broke the bearish trendline which has been going on since February 2021 and this could allow buyers to regain strength. For buyers, it will be necessary to keep the support and come out on top of this tidy.
Against Bitcoin, FTT also came out of a bullish right trianglebut still no new higher for the moment:
The FTT outperforms Bitcoin and confirms the uptrend continuing to build troughs and ascending peaks. It comes out, like the BNB, from the top of the bullish right triangle and continues its bullish trend against Bitcoin.
The momentum had already given a signal a few months ago and the RSI bounced back on the downtrendline. It seems that all the lights are green for the FTT / BTC.
Huobi’s token is less encouraging
The exchange platform suffered from China’s policy towards cryptocurrencies and suffered the blow. Since then, the platform has experienced a decrease income level and the market does not like it. In addition, the founder of Huobi intends to sell his shares, but the situation is not yet clarified. Meanwhile, the Huobi token is relatively weak :
Recently, the HT succeeded in reverse the trend weekly. In contact with the resistancethe price has developed a market low with a structure in double bottom. The underlying trend still remains bearish and it will take development to regain a healthy uptrend. Buyers must now hold the lower to $4.3 and frankly exceed the resistance weekly.
Momentum is attempting a breakout at the bearish trendline, but nothing is confirmed yet. If confirmed, buyers could take advantage.
While the bearmarket seems to be continuing for almost all cryptocurrencies, some are showing resilience. This is the case for certain exchange tokens such as BNB or FTT. These assets are strong and maintain a bullish trend against Bitcoin despite its recent sharp drop. Please note that not all tokens in the exchange sector are in the same situation as we have seen with the Huobi token. So, are the BNB and the FTX starting to rise again to end 2022 in style or is Bitcoin preparing a new wave of decline that will bring down the last resisters?
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