BNB Price Analysis Post-29th Quarterly Burn; Is $800 Within Reach?

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As a seasoned analyst with years of experience navigating the tumultuous seas of the crypto market, I must say that the current situation presents some intriguing opportunities for those who dare to venture forth. The recent bearish turnaround in Bitcoin and the altcoin market has undoubtedly cast a shadow over our beloved digital assets, but fear not! For within this gloom, there are beacons of hope shining brightly.

Since mid-week, there’s been a shift in the crypto market towards a downturn, with Bitcoin‘s price falling below its $70,000 minimum. This drop is likely due to increased selling as investors grow cautious ahead of the U.S. election results. Meanwhile, the altcoin market is embracing this bearish trend, but an analysis of BNB suggests it could see significant movements, possibly positive, around the 29th Quarterly Burn and with the emergence of a reversal pattern.

As a researcher, I’m observing that at present, the Binance Coin (BNB) is exchanging hands for approximately $572, with an intraday decrease of 0.68%. Referencing data from Coingecko, the market capitalization of BNB stands impressively high at around $82.4 billion, while the 24-hour trading volume hovers near $1.73 billion.

BNB Price Analysis Post-29th Quarterly Burn: Is $800 Within Reach?

The BNB Foundation recently carried out its 29th quarterly burning of BNB tokens, taking out 1,772,712.363 BNB (equivalent to around $1.07 billion) from the market circulation. This procedure is a key component of Binance’s deflationary strategy, which seeks to generate long-term pressure on demand for BNB coins by diminishing the amount in circulation.

These quarterly burns and future burns will be conducted directly on Binance Smart Chain (BSC), enhancing transparency and decentralization. The token set for incineration will be sent to an inaccessible address, “blackhole,” ensuring the removal of those tokens permanently from circulation.

The consistent use of BNB in burn activities might spark interest in price analysis, as this scarcity principle often influences market value.

Can Binance Coin Bullish Reversal Pattern Propel It to $970?

For six weeks now, the price of BNB has been moving in a horizontal range, bouncing between approximately $620 and $530. This sideways movement might suggest some hesitation among both buyers and sellers. However, when we look at the daily chart, we can see the emergence of a bullish reversal pattern known as an “inverted head and shoulder.

For BNB, the pattern comprises three significant dips: the center one being the deepest (peak) while the ones on each side (shoulders) represent higher bottoms. If this pattern remains valid, the Binance Coin price is expected to increase before surpassing the $530 support and testing its key resistance at around $633 again.

If the cryptocurrency market exhibits a possible breakout from its current reversal pattern, it implies that the ongoing upward trend is likely to persist further.

After a breakout, the price of BNB might be analyzed with a goal of reaching $970, representing a potential increase of 54%. The altcoin currently trading above crucial moving averages like the 100-day and 200-day EMA suggests that the overall direction for this asset is positive.

Alternatively, if the selling activity at around $180 becomes strong again, it might indicate a significant change in direction and the resumption of the ongoing upward trend.

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2024-11-02 00:53