2019-12-13 17:41 |
The Binance Coin (BNB) price increased by 50 percent in the month of October. It has been correcting since and has retraced by 100 percent, erasing all of the October gains. While it is approaching reversal levels, it is possible that it finished another final downward movement.
The ongoing correction is transpiring at a faster rate than Bitcoin since the BNB/BTC pair has also lost roughly 20 percent of its value over the past months. If the correction continues, a possible target was given by well-known trader Josh Olszewicz, who suggested that BNB is likely to decrease to $10.
looks like $BNB wants $10 pic.twitter.com/lsI1J81jLb
— Josh Olszewicz (@CarpeNoctom) December 12, 2019
Let’s take a closer look at the BNB price movement and see if this really is the case.
Long-Term SupportThe BNB price began an upward move at the beginning of 2019, similar to the rest of the cryptocurrency market. However, after reaching a high of $42.6 at the end of May, it began the currently ongoing correction.
The Binance Coin price has twice bounced on the 0.786 Fib level, where it currently has made a double bottom. The next support is found at $10-$10.5, coinciding with the 0.88 Fib level.
Previous MovementThe Binance Coin price reached a low of $14.8 on October 7 before beginning an upward move that caused it to increase by 50 percent by the end of the month.
However, it created an ascending wedge and, once it reached the resistance area near $22, the price decreased rapidly and broke down.
Currently, it is trading near the lows prior to the upward move at $14.4. This coincides with the 0.786 support level from the previous section.
Short-term movements reveal that the BNB price broke down below the minor support area at $15, before validating it as resistance. This area acted as support throughout late November/early December.
However, there is significant bullish divergence transpiring in the RSI & MACD. Also, there is still some support at these lower levels, evidenced by the long lower wicks of November 21 & 25.
BNB FractalThe tweet outlines a possible fractal in which the 2018 correction is similar to the current one.
In 2018, the BNB price followed a curved resistance line before breaking out, consolidating, and then initiating a final downward wave — which ended at the 0.5 Fib level of the preceding upward move.
In the current movement, the price was following a curved resistance line, broke out and has been consolidating. It is worth noting that the price is currently at the 0.5 Fib level. If another downward leg was to transpire, it would take the price to the 0.382 level — meaning that the fractal is not identical.
Due to the bullish indications from lower time-frames, it is expected that the price continues to consolidate between $14-$16.5 before possibly breaking down.
To conclude, the BNB price has fallen to a significant support area and just broke down from minor support. The price should continue to consolidate before possibly completing another leg lower towards $10.
Images courtesy of TradingView.
The post Binance Coin Has Not Finished Correcting- Suggests Analyst appeared first on BeInCrypto.
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