BNB Price Forms A Risky Pattern: Is There A Path To $1200?

by

As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market patterns and trends. The current state of Binance Coin (BNB) is intriguing, to say the least. On one hand, we have the daily chart pointing towards a potential bearish breakout, while the weekly chart suggests a bullish pattern that has been in the making for three years.

The price of BNB, the fifth-largest cryptocurrency, has been holding steady within a range ($665 to $600) over the last nine days, with both daily and weekly charts providing conflicting indicators. However, one might wonder if it could potentially reach $1,200.

BNB Price Has Formed A Rising Wedge 

The daily chart for Binance Coin suggests a potential sharp downturn could be imminent, signaling a bearish market trend.

Since September, it’s been developing a pattern that resembles a rising wedge. This pattern occurs when an asset experiences both higher peaks and higher troughs, which eventually meet or converge. Typically, in such periods, the asset tends to break down bearishly as the two lines move closer to their convergence point.

Based on the width of the wedge’s widest point, it seems reasonable to predict a potential bearish drop in Binance Coin price, possibly down to around $400. This represents approximately a 35% decrease from its current value.

As a researcher studying BNB price trends, my forecast suggests that if the coin drops below the lower boundary of the wedge pattern (approximately $580), it would confirm my bearish outlook for the short term. Conversely, a rally surpassing the upper boundary of the wedge pattern ($665) would contradict this bearish view and potentially indicate a leap towards the year-to-date high of $721, representing an 18% increase from the current price level.

Binance Coin Is Forming A Bullish Pattern On The Weekly

As a researcher, I’m excited to point out that over the past three years, the Bullish Pattern of Binance Coin (BNB) prices seems to be quite unusual and promising.

Starting in 2021, the value of the coin peaked at an unprecedented level of $692.60 before experiencing a retreat. Following this, it reached $667.17, only to begin a descent that eventually bottomed out at $188 in 2022. Throughout this period, the coin has been shaping a seldom-seen cup and handle pattern, with its upper boundary ranging from $700 to $667.

After forming the “cup” part, assets often either gather strength (consolidate) or experience a decrease (pull back). This is likely why the value of the coin has been moving within a narrow range over the past several months.

Backing up this perspective is the observation that the coin continues to stay above its 50-week moving average, and moreover, it exhibited a long-bodied candlestick pattern (doji) in August.

In simpler terms, when the price of Binance Coin surpasses its highest point this year ($721), the path towards reaching $1,000 should become more evident. Conversely, if the BNB token falls below the lower boundary of the doji at $402, it would suggest a bearish trend and potentially indicate further price decreases, as the rising wedge pattern on the daily chart would be reinforced.

Read More

2024-11-20 16:38