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At BeInCrypto, we regularly conduct technical analyses of several cryptocurrencies including Bitcoin, Ethereum, XRP, and many others. Based on our May 20 analyses, we were able to develop one short trade setup for (BNB). As well, we defined two possible long trade setups for (BAT).
These are presented in the following sections:
Below we define a possible short setup for BNB In order to learn how we arrived at this trade setup, you can read our May 20 technical analysis of Binance Coin here.
An average entry of $29 is defined. The stop-loss order is placed at $30.55, slightly above the May 19 high. This is a stop loss of 5.33%.
Our target is set at $21.22, slightly above the long-term support line.
Combined with the stop loss mentioned above, this is a risk: reward ratio of 5:1.
A breakdown from the current trading pattern is required for the price to reach our target. If the price does so, we would expect our target to be hit around May 31st.
Two possible long trade setups for Basic Attention Token (BAT) are defined in this section. In order to learn how we arrived at these trade setups, you can read our May 20 technical analysis of BAT here. Where we used a BNB/USD pair in the previous section, we use a BAT/BTC pair here.
The average entry defined for both long setup is 4550 satoshis. In addition, but trade setups are placed with a stop-loss order at 4259 satoshis. This is less than the lows experienced on May 13.
Our first targets is set at 5825 satoshis. The second is set at 7450.
For the first target, there is a Risk/Reward Ratio of 4.4. This means that the price would have to reach the target 22.7% (1/4.4) of the time for the trade to break even.
For the second target there is a Risk/Reward Ratio of 10.1. This means that the price would have to reach the target 9.90%(1/10.1) of the time for the trade to break even.
A brief summary of both trade setups is presented in the table below:
|TRADE SETUPS||BINACE COIN (BNB)||BASIC ATTENTION TOKEN (BAT)|
|Trade Setup 1||Short
Risk/Reward Ratio : 4
Risk/Reward Ratio : 4.4
|Trade Setup 2||N/A||Long
Risk/Reward Ratio : 10.1
Do you think that these trade setups will prove profitable? Let us know your thoughts in the comments below!
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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