Originally published on: December 04, 2024
BNB has taken the cryptocurrency market by storm, soaring by 22.50% in the past 24 hours to hit a new all-time high of approximately $794 on December 4th. This impressive performance stands in stark contrast to the overall crypto market, which has seen a modest 3% uptick.
The rally of BNB kicked off following a mysterious tweet from Binance co-founder Changpeng Zhao, also known as “CZ,” on December 3rd. The tweet hinted at the start of “altseason,” a period where alternative cryptocurrencies outshine Bitcoin in terms of gains.
As seen in the Bitcoin Dominance Index (BTC.D), which measures Bitcoin’s market capitalization against that of altcoins, BTC’s dominance has plummeted from 61.53% to 54.73% in the last two weeks. This shift has led to a stabilizing market cap of $1.91 trillion for Bitcoin and a remarkable 36.50% surge in the altcoin market cap to $1.59 trillion, indicating a risk-on sentiment among traders.
BNB has significantly benefited from this bullish trend, with its dominance in the crypto market rising by 18.41% since December 2nd.
The recent price surge of BNB seems to be fueled, in part, by the futures market activity, where traders holding short positions faced more significant liquidations compared to those with long positions. The imbalance in liquidations highlights the potential impact of a short squeeze in propelling BNB’s price upwards.
Today’s surge in BNB price marks the breakout phase of the cup-and-handle pattern it has been following. The price has surpassed the key resistance level around $650, signaling a breakout and indicating further upward potential based on the pattern.
This bullish momentum suggests that BNB’s price could target $2,500 by 2025, assuming the ongoing altseason continues. Tron has also completed a similar cup-and-handle pattern and experienced a substantial 200% rally post-breakout.
It’s crucial to note that this article provides general information and should not be construed as legal or investment advice. The opinions expressed are solely those of the author and do not necessarily reflect the views of Cointelegraph. For more insights and analysis, subscribe to the Markets Outlook newsletter for weekly updates on investment opportunities and trading strategies.