Every story that has fascinated the imagination of modern man presents a sparkling protagonist who lashes out against a threatening antagonist. Despite all the strength, the tenacity or the intelligence of the hero is often equaled, if not exceeded, by the anti-hero. We see this relationship embodied among imaginary characters; Batman and the Joker, Professor X and Magneto, Neo and Agent Smith, and many others.
Nobody is bigger than the other; only two tangled forces moving in opposite directions. In the world of cryptocurrencies, no pair shares this relationship more tangibly than Bitcoin (BTC / USD) and Binance Coin (BNB / BTC). In this article we show the inverse relationship of Bitcoin and Binance Coin.
A Tale of Two Reversals – Bitcoin Vs. Binance Coin
On December 27, 2017, Bitcoin was just coming out of a record high of $ 19.891. Investors were euphoric. Although the market has grown by more than 1.957% for the year, gurus and experts have urged people to buy the dive. The correction was temporary, they said, as Bitcoin's year-end goal was around $ 22,000.
They were wrong because that day, BTC / USD printed its first lower maximum in months. The lowest level was the first sign that the bull race was over.
BTC / USD daily chart in December 2017
While BTC / USD was showing signs of exhaustion, BNB / BTC broke out from a reverse fund pattern rounded up on the daily chart. It marked the start of the couple's seven-month uptrend.
BNB / BTC daily chart in December 2017
Uncanny trend continuation time
Bitcoin started to break down with a lower level. On March 5, 2018, it generated another lower maximum of $ 11,700. Two months later, on May 5, he created another lower minimum of $ 9.990. The bears had full control of the market.
Lower low of BTC / USD
On the other hand, BNB / BTC was on a bullish fury. The pair generated a lower minimum on March 7, 2018 of 0.0008325. Exactly two months later, on May 7, BNB / BTC published another higher minimum of 0.0014002.
BNB / BTC Higher Highs
Correlation and timing are disturbing. For Bitcoin, the lower high not only indicated the start of a bearish rally, but apparently, even a lower setup for Binance Coin. This happened twice and on both occasions, Binance Coin recorded higher lows two days after Bitcoin generated lower peaks.
Fortunes Reverse Once More
At the end of June, dark and catastrophic Bitcoin predictions were spreading the Internet. Many were predicting that Bitcoin would reach $ 4000, while some expected a reduction of up to $ 2000. As we all know, none of this happened while Bitcoin managed to rebound on June 29 after losing a minimum of $ 5,755. The rebound catapulted the market to $ 8,506.7 on July 24th.
Recent BTC / USD meeting
It is interesting to note that BNB / BTC ended its upward run on 29 June after passing the support of 0.0024. This triggered the double top scheme on the daily chart and started a sales frenzy. Exactly one month later, on 24 July, the pair hit the bottom at 0.0014286.
Recent Bear Race by BNB / BTC
At this point, the inverse relationship between Bitcoin and Binance Coin proved to be obvious. If you want to know where Bitcoin is going, an indication would be to look at the performance of Binance Coin and expect the opposite results. The same is true for Binance Coin.
Bitcoin and Binance Coin look like two entangled forces moving in opposite directions. If Bitcoin / US Dollar goes up, wait for Binance Coin / Bitcoin to fall. On the other hand if Binance Coin / Bitcoin rebounds, Bitcoin / US Dollar will most likely correct. It seems that the inverse relationship between the two is now obvious.
Featured image courtesy of Shutterstock.