As a seasoned crypto investor with several years of experience in the market, I have seen my fair share of bull runs and bear markets. The recent surge in the cryptocurrency market, spearheaded by Bitcoin’s price break above $62,000, has brought renewed optimism among traders and investors alike. However, as someone who has been through multiple market cycles, I remain cautiously optimistic.
Over the past few days, there has been a notable increase in bullish sentiment within the cryptocurrency market. Bitcoin‘s price surpassed $62,000, leading analysts to point towards decreased supply due to Germany selling some of its Bitcoins and former US President Trump surviving an assassination attempt as possible reasons for this rally. The altcoin sector, including Binance Coin, has followed suit in the market recovery. However, the analysis of Binance Coin’s price revealed a false breakdown near $500 to attract more investors into the market.
Binance Coin Price Analysis: Traps for Short Sellers and Opportunities for Buyers
Analyzing the daily chart for Binance Coin, there’s a noticeable pattern of ambiguity emerging, marked by extended periods of sideways movement. This uncertainty was first challenged on June 4th when the asset seemingly broke through resistance at $645, only to be followed by a disappointing breakdown on July 7th. Despite being perplexing for new traders, these price swings align more closely with Elliott Wave Theory projections and provide valuable insight into the present market situation.
According to the wave count depicted in the given chart, it appears that Binance Coin’s price action has formed a four-wave correction.
In practice, this pattern is referred to as a corrective action by buyers aiming to regain lost ground and reinvigorate the waning bullish trend.
On June 4th, the market experienced a breakthrough over the resistance level at $645. Conversely, on July 7th, there was a breakdown below the support level at $494. Nevertheless, no traders successfully captured and held onto significant gains from these market movements.
Based on the hypothesis, the apparent failure of the $500 mark caused short sellers to be ensnared, while providing a chance for buyers to acquire assets at reduced costs.
According to Binance coin’s price analysis, there has been an instant rebound to $577, resulting in a 23% increase. Subsequently, the market capitalization surged to reach $1.97 billion.
Based on the Fibonacci extension levels, the probable price targets for the fifth wave of the impulse may reach around $775, with a potential subsequent peak at approximately $975.
Technical Indicator:
- EMAs: The BNB price back above the 200D Exponential Moving Average slope restores the broader bullish outlook in this asset.
Vortex Indicator: A potential bullish crossover between the VI+(blue) and VI-(pink) slope will accelerate the bullish momentum in price recovery.
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2024-07-15 23:48