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Binance Coin must break out above this level before BNB can retest $660

  • Binance Coin price is close to a decisive bullish breakout that could trigger a nearly 50% rally.
  • Bulls are in control and have displayed impressive support.
  • Near-term resistance may not hold for long.

Binance Coin price has been one of the few bright lights in the cryptocurrency space over the past two weeks. Despite closing below last week’s weekly candlestick at the open and retracing 10% from the highs, bulls have pushed BNB to an early rally this week with an 8% swing higher.

Binance Coin price is set to outperform its peers, but a close above $450 is necessary to sustain any rally

Binance Coin price action is already testing the resistance level that BNB was rejected against last week: the $450 value area. The $450 value area contains the final and single most extensive collection of resistance for BNB on the weekly Ichimoku chart. The 2022 Volume Point of Control, weekly Tenkan-Sen, and weekly Kijun-Sen all share the $450 value area.

A hypothetical long opportunity exists with a buy stop order at $456, a stop loss at $400, and a profit target at $660. The entry is only valid if the weekly close is at $456 or slightly above it. The profit target is the 61.8% Fibonacci expansion and in range of the prior all-time highs. If enough momentum exists, it is entirely possible that Binance Coin price could extend beyond $660 and make a run towards the 100% Fibonacci expansion at $1,000.

The oscillators support a robust, bullish, expansive move occurring very soon. The Relative Strength Index has maintained a bull market setup, with the final oversold level at 40 holding as the primary support structure in that oscillator. Additionally, the Composite Index was at the third lowest levels in its history for a little over a month and flatlined, creating regular bullish divergence. The Composite Index is poised to create a solid bullish expansion signal with a crossover of its fast-moving average.

BNB/USDT Weekly Ichimoku Kinko Hyo Chart

The hypothetical long entry for Binance Coin price and bullish outlook will be invalidated if there is a weekly close inside the Ichimoku Cloud at or below the $380 value area.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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