Portal (IOU)

Portal

Bitcoin

On June 5, BNB (<a href="https://cointelegraph.com/binance-coin-price-index">BNB</a>) price established a new record high at around $716 after rising 4.50% intraday and by over 14% in the last 24 hours. In doing so, the Binance native cryptocurrency outperformed the broader crypto market, which rose 3.5% in the last 24 hours.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/fead8fe0-d9e0-40af-8d8b-d7d3feb3e0e6.png">
 <figcaption style="text-align: center;">
 BNB/USD versus TOTAL crypto market capitalization four-hour performance chart. Source: TradingView
 </figcaption>
</figure>
There isn't any clear fundamental indicator behind BNB's price outperformance today compared to the rest of the crypto market. Instead, the cryptocurrency is drawing its bullish cues from macroeconomic and technical indicators.
<h2 id="declining-bond-yields-boost-bnb-buying">Declining bond yields boost BNB buying</h2>
The duration of BNB and, in turn, the crypto market's recent gains coincide with declining U.S. bond yields.
For instance, the benchmark U.S. 10-year Treasury note yield (US10Y) declined to 4.332% on June 4 from 4.63% five days ago. The same period witnessed BNB's price rally by over 20.75%, showing a clear negative correlation with the bond yields.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/b932efaa-f60f-43c8-87dc-e55a58b4365f.png">
 <figcaption style="text-align: center;">
 BNB/USD versus US10Y daily performance chart. Source: TradingView
 </figcaption>
</figure>
Treasury yields declined on the signs of the Federal Reserve's preferred inflation gauge remaining steady, coupled with <a href="https://www.cnbc.com/2024/06/04/cnbc-daily-open-dow-drops-on-weak-manufacturing-data-gamestop-soars.html" target="_blank" rel="noopener nofollow">weaker-than-expected data on manufacturing</a> and consumer spending. They fell even further on June 4 after an unexpected <a href="https://cointelegraph.com/news/bitcoin-new-high-slowing-us-inflation-employment-data">decrease in U.S. job openings</a> was reported.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/12633167-7882-4084-b398-eab36e607e90.png">
 <figcaption style="text-align: center;">
 Source: Yahoo Finance
 </figcaption>
</figure>
Signs of slowing inflation have prompted bond traders to advance their expectations for the Federal Reserve's first full 25 basis-point rate cut to November from December.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/f2cd8e26-3b61-4ba0-9a4a-d0b73d13e4d8.png">
 <figcaption style="text-align: center;">
 Fed interest rate projections. Source: Bloomberg
 </figcaption>
</figure>
Declining interest rates reduce the opportunity cost of holding safer investment assets such as cash and bonds. 
As a result, they lead to an increase in appetite for riskier assets such as crypto and stocks, a sentiment that has helped BNB—the fourth-largest cryptocurrency by market cap—rise today.&nbsp;
<h2 id="bnb-enters-ascending-triangle-breakout-stage">BNB enters ascending triangle breakout stage</h2>
From a technical standpoint, today's gains in BNB's price signify the breakout phase of its current ascending triangle pattern, triggered by a support confluence comprising the 20-day (purple) and the 50-day (red) exponential moving averages (EMA).
Related:&nbsp;<a href="https://cointelegraph.com/news/us-policy-change-expose-crypto-20-trillion-industry-bitwise">US political change could expose crypto to $20T industry: Bitwise</a>
For the unversed: An ascending triangle forms when the price fluctuates between rising trendline support and horizontal trendline resistance. In an uptrend, the pattern resolves after the price breaks above the resistance and rises by as much as the triangle's maximum height.
As of June 5, BNB's price was breaking above the triangle's resistance, eyeing a further run-up toward the upside target at around $800, up about 15% from the current price levels.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/ff5e64f3-e0b6-470c-b0b1-462f68cdada7.png">
 <figcaption style="text-align: center;">
 BNB/USD daily price chart. Source: TradingView
 </figcaption>
</figure>
On the flip side, BNB's daily relative strength index (RSI) has entered its overbought area above 70, increasing the likelihood of a price correction or consolidation in June.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/97a39660-e989-4faa-aab9-dadce6c54199.png">
 <figcaption style="text-align: center;">
 BNB/USD daily price chart. Source: TradingView
 </figcaption>
</figure>
That coincides with the price testing its 1.618 Fibonacci retracement line at around $708 as resistance, furthering a correction outlook toward the 1.00 Fib retracement line at approximately $630, down by about 11.50% from the current price levels, in June.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Why is the BNB price up today?

Table of Contents

Cointelegraph

Other articles published on Feb 22, 2024

MATIC Price Drops By 8.5% As Polygon Conducts Last Token Unlock

4 Altcoins To Buy For 2024 Bull Run As Token Unlocks Beckon

Why USDC and USDT Holders Are Diversifying Their Holdings Into New Emerging Memecoin Giant

Biggest Cardano (ADA) dApp Teases Incoming Upgrade: Details

EigenLayer’s Breakthrough: A $100 Million Boost from Andreessen Horowitz

South Africa plans to use stablecoins and blockchain as a way to promote equality

Join our free newsletter for daily crypto updates!