Binance Coin (BNB) price got rejected by the long-term horizontal resistance area. It is also following a short term resistance line.
BNB price has declined since hitting an all-time high of $691.80 in May 2021. The decline accelerated after the price of Binance Coin bottomed out in November of the same year.
In May 2022, BNB price broke above the horizontal zone with an average price of $240. This sector had provided support since September 2021.
Now, it has turned to resistance and rejected the price in November, forming a massive bearish engulfing candlestick (red icon). While this caused a sharp drop, the price of Binance Coin quickly recovered after two weeks (green icon) with a bullish engulfing candlestick.
As a result, technical analysis from the weekly time frame offers a mixed outlook, leaning bearish. Since BNB is trading below the price resistance, the price movement can be seen as bearish despite the bullish engulfing candlestick. On the other hand, RSI is neutral.
BNB completes price correction
The short-term six-hour chart also offers a bearish outlook for two reasons.
Firstly, it looks like the price of Binance Coin has completed an ABC corrective formation (black), with the wave A:C ratio at 1:1.61.
Secondly, BNB price is following a descending resistance line. The line caused a rejection on Nov 26 (red icon). Later, the December 2022 price action has been bearish. There has been a marginal decline in the last 24 hours as well.
As long as the line is present, the short-term trend is considered bearish. If both halves of BNB make similar highs (highlighted), the price could decline further towards $220.
BNB/BTC to top soon?
The BNB/BTC pair is in a long-term uptrend since August 2017. The all-time high price was ₿0.0197, which is the all-time high.
The most likely count suggests that BTC is in a sub-wave five (black) of wave five (white). As a result, the entire uptrend may soon come to an end.
The first potential target for the top of the movement is at ₿0.021, formed by the 2.61 outside retracement of wave four. The goal is also likely because it would give subwaves one and five a 1:1 ratio.
So far, there are no clear bearish signals other than the long upper wick after the all-time high (red icon).
Once BNB reaches the price target, a bearish divergence in the RSI will confirm that the top is in the upside. In that case, BNB price could decline towards its Wave Four area at ₿0.008.
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BeinCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.