Why is the BNB price up today?

BNB (BNB) has emerged as one of the best cryptocurrency market performers today, rising 22.50% in the last 24 hours to reach a new record high of around $794 on Dec. 4.

In comparison, the crypto market is up around 3%.

CZ hints at crypto “alt” season

BNB’s rally started after Binance co-founder Changpeng Zhao, aka “CZ,“ posted a cryptic tweet on Dec. 3 that hinted at the beginning of “altseason,” a period when alternative cryptocurrencies outperform Bitcoin (BTC) in terms of percentage gains.

For instance, the Bitcoin Dominance Index (BTC.D), which measures BTC’s market cap against the combined valuation of all altcoins, has declined from 61.53% to 54.73% in the past two weeks.

The same period has witnessed Bitcoin’s market capitalization stabilizing around $1.91 trillion and the altcoin market cap surging 36.50% to $1.59 trillion. It shows that traders are currently risk-on, seeking maximum profits.

BNB has lately benefited from this bullishness, with its crypto market dominance up 18.41% since Dec. 2.

Last week, XRP’s price surged by over 125%, while Tron (TRX) has followed suit, posting gains of over 120% in just two days and reentering the top-10 cryptocurrencies by market cap.

Short liquidations boost BNB prices upward

BNB’s price surge appears to be partly fueled by activity in the futures market, where traders betting on lower prices (short positions) faced higher liquidations than those betting on higher prices (long positions).

Since Dec. 3, the BNB futures market has recorded $5.48 million in short liquidations, nearly double the $2.72 million in long liquidations. This liquidation imbalance highlights the potential role of a short squeeze in driving BNB’s price higher.

A short squeeze occurs when traders who bet on a price decline are forced to exit their positions by buying back the asset at higher prices.

BNB price confirms breakout — What’s next?

Today, BNB’s price rally is part of the breakout stage of its prevailing cup-and-handle (C&H) pattern.

The “cup” formed over a multi-year period, representing a rounded consolidation phase, while the “handle” created a brief pullback below the neckline resistance of around $650.

BNB’s price has now broken above the neckline, confirming the breakout. This move suggests further upside, with the breakout target calculated by adding the cup’s depth to the neckline.

Related: Bitcoin bottom at $94K? BTC traders regroup after ‘Kimchi premium’ flash crash

Based on this pattern, BNB’s price could aim for as high as $2,500 in 2025, assuming bullish momentum persists in the ongoing altseason.

Interestingly, Tron has just completed a similar C&H pattern, rising by over 200% after its breakout.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.