BNB, THE BEST HEDGE
From this chart, you can clearly tell that BNB and BTC have been inverse of each other so far.
In Section 1, Bitcoin started to pull back after making a high of around $20,000 or so. This was the beginning of the Bitcoin bear market. At the same time, BNB started it's massive bull market.
In Section 2, Bitcoin dragged the entire cryptocurrency market down with it in a capitulation sell-off. BNB was also dragged into this sell off, nothing survived besides tether.
In Section 3, Bitcoin bounced back with a fairly healthy bull run to the $11,000 range where it double topped. At the same time, BNB therefore continued it's retracement.
In Section 4, Bitcoin pulled back and the bitcoin bear market continued. BNB did the opposite, continuing it's bull run.
In Section 5, Bitcoin stopped dropping and entered a mild bull run. BNB therefore started to pull back.
In Section 6, Bitcoin began to retrace again, continuing with the larger bear market. BNB continued with it's larger bull market, bouncing back.
In Section 7, Bitcoin reversed trend again, going on a short bull run. BNB retraced all of it's gains from the prior bull run.
In Section 8, the current section, Bitcoin is retracing it's gains from the current bull run, and BNB has reversed trend and is in bull mode yet again.
The lessons that I've learned from this are:
1. BNB is a great hedge to BTC, and holding BNB while BTC is retracing will cause your BTC stack to increase the majority of the time.
2. BNB and BTC are mostly inverse of each other, the only exception is when there is a large market-wide capitulation sell off. It's possible during a Large market-wide bull market they could both have simultaneous bull runs.
In Section 1, Bitcoin started to pull back after making a high of around $20,000 or so. This was the beginning of the Bitcoin bear market. At the same time, BNB started it's massive bull market.
In Section 2, Bitcoin dragged the entire cryptocurrency market down with it in a capitulation sell-off. BNB was also dragged into this sell off, nothing survived besides tether.
In Section 3, Bitcoin bounced back with a fairly healthy bull run to the $11,000 range where it double topped. At the same time, BNB therefore continued it's retracement.
In Section 4, Bitcoin pulled back and the bitcoin bear market continued. BNB did the opposite, continuing it's bull run.
In Section 5, Bitcoin stopped dropping and entered a mild bull run. BNB therefore started to pull back.
In Section 6, Bitcoin began to retrace again, continuing with the larger bear market. BNB continued with it's larger bull market, bouncing back.
In Section 7, Bitcoin reversed trend again, going on a short bull run. BNB retraced all of it's gains from the prior bull run.
In Section 8, the current section, Bitcoin is retracing it's gains from the current bull run, and BNB has reversed trend and is in bull mode yet again.
The lessons that I've learned from this are:
1. BNB is a great hedge to BTC, and holding BNB while BTC is retracing will cause your BTC stack to increase the majority of the time.
2. BNB and BTC are mostly inverse of each other, the only exception is when there is a large market-wide capitulation sell off. It's possible during a Large market-wide bull market they could both have simultaneous bull runs.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.