The price of Binance Coin (BNB) has increased significantly since falling to a new annual low in June. The recent triple-bottom pattern could confirm that a bullish reversal has begun.
The price of BNB has been declining since reaching an all-time high of $692 in May 2021. In November 2021, it made a slightly lower high and resumed its decline below a descending resistance line.
This reduction led to a minimum of $183 annually in June 2022. Initially, it looked like there was a downside break below the $255 horizontal support area. However, BNB price reversed the trend shortly after and reclaimed the area (red circle). In August, it managed to break out of the above descending resistance line.
Additionally, the weekly RSI has broken above its bearish divergence trend line (green), increasing the validity of the breakout. But it is worth noting that the indicator still has to move above 50. This would further confirm that a bullish reversal has begun.
If the upward move continues, the nearest long term resistance area will lie at $427. This is the 0.5 Fibonacci Retracement resistance level and a horizontal resistance area.
Binance Coin Price Prediction: Triple Bottom
Between September 06 and October 13, Binance Coin price formed a triple bottom pattern (green arrow). According to technical analysis, a triple bottom is considered a bullish pattern that usually leads to a bullish trend reversal. Additionally, the final bottom formed a very long bottom wick, which is seen as a sign of buying pressure.
However, the BNB price pattern is yet to be confirmed. This is because the price is still following a descending resistance line, which acts as resistance to the pattern. A breakout from this is needed to confirm the pattern.
In that case, the next resistance area would be $336. This is an important horizontal level as it has previously acted as both support (green sign) and resistance (red sign). So, a breakout above this can significantly accelerate the rate of growth. It is entirely possible that a breakout will occur within the next 24 hours.
So far, the bullish Binance Coin price prediction on the daily time frame is in line with the bullish readings on the weekly time frame.
Wave count supports continuation of BNB price upward movement
Measured from March 2020, the wave count most likely shows that BNB price has started the fifth and final wave of a Bullish Impulse (Black). If true, the upward movement will lead to a new all-time high. The first potential target is $996, which is formed by the 1.61 external Fibonacci retracement level of the wave four.
Conversely, a decline below the yearly low of $183 would invalidate the bullish wave count. In that case, due to lack of support below the level, the downside rate could accelerate and BNB price could drop below $100.
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