BNB: It’s All in the BTC Ratio

In the event you don’t know what coin season is or how to choose your altcoin, I’ve already written about it few weeks in the past.

Altcoin season is when alts outperform Bitcoin. Almost certainly, alt dominance will come again, and the perfect survivors are the ones which have a historical past of ratio consolidation.

BNB is a superb example of survival. Let’s take a look at the BNB/BTC ratio month-to-month chart.

(You'll be able to paste it like this on TradingView: CRYPTO:BNBUSD/CRYPTO:BTCUSD)

The historic cycle:

• Throughout 2018 - 2021: The BNB/BTC ratio shaped a double backside on the month-to-month chart, consolidated for a while, after which, within the late cycle when alts pumped, it shortly retraced back to its ratio all time excessive and broke out.
• This cycle: We will clearly see one other double backside on the ratio in 2024 and early 2025. This fall is the place altcoin season should play out. That provides BNB a excessive probability of retracing again to its 2022 ratio all time excessive of 1BNB = 0.0175 BTC.

Now, do the maths:

Throughout alt season, BTC can easily warmth up to the danger zone of 70. Based on the Dynamic Danger Vary, BTC at 70 ~ $145Okay.

So the potential worth of BNB can be:

$145Okay * 0.0175 = $2,537.5

That’s a modest 200% from the current worth. In fact, it might go larger if BTC pushes further into the danger zone.

And don’t overlook ETH, the blue chip, king of alts. ETH leads alt season: it breaks ATH first, and it often lasts till the very end of the cycle. In both 2018 and 2021 tops, BNB topped proper when ETH was peaking, with ETH danger in the 90 vary. It’s affordable to make use of the ETH danger metric as ur navigator for altcoins.

I really like the survivors, they’ve stood the check of time. The market will all the time be risky, however that’s the sport. Maintain your eyes on the danger metric.