Binance Coin price coils up before BNB rallies 20%

Binance Coin price has been consolidating for roughly ten days, hinting at a massive move.
A breakout move is likely going to propel BNB to rally 18% to fill the FVG at $453.86.
A four-hour candlestick close below $336.30 will invalidate the bullish thesis.

Akash Girimath FXStreet

Binance Coin price saw a massive flash crash between January 20 and January 22, which was a result of the crypto market crash. While many altcoins have recovered after this slump, BNB has coiled up for the last ten days, suggesting that a massive bounce is on its way.

Binance Coin price prepares for liftoff

Binance Coin price dropped roughly 30% between January 20 and January 22. This sudden drop was spread across all cryptocurrencies and many altcoins have recovered above the January 20 levels.

However, BNB seems to be taking its time as it has continued to coil up for the last ten days. This consolidation and squeeze in price action suggest that Binance Coin is setting up the stage for a massive uptrend.

The Fair Value Gap (FVG) extending from $402.53 to $453.86 further adds a tailwind to the breakout thesis. Therefore, investors can expect the Binance Coin price to rally at least 18% to $453.86. In some cases, the market participants can expect this rally to extend to the 200-day and 50-day Simple Moving Average confluence at $466.68, bringing the total run-up to 21%.

BNB/USDT 4-hour chart

On the other hand, if the Binance Coin price fails to move higher, there is a good chance it will slide lower and retest $357.45. A breakdown of this barrier could see BNB sweep below the $336.30 support level and the liquidity resting below.

While market makers might push BNB to sweep below $336.30, a prolonged price action below the barrier will invalidate the bullish thesis for Binance Coin.

Author

Akash Girimath

FXStreet

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

Stellar Price Forecast: XLM slips below $0.22 as bearish momentum builds

Stellar (XLM) price is trading below $0.22 at the time of writing on Wednesday after failing to close above the key resistance earlier this week. Bearish momentum continues to strengthen, with open interest falling and short bets rising.

Pi Network Price Forecast: PI struggles to rebound amid muted demand

Pi Network (PI) edges higher by almost 1% at press time on Wednesday, bouncing off the $0.2000 level after a four-day decline. The recovery lacks momentum as the social interest surrounding Pi Network declines. Technically, PI is at a crossroads, struggling for a rebound as momentum is lacking.