Sheldon McIntyre, CMT
Independent Analyst
- Binance Coin price is finalizing a minor ascending triangle pattern with a double-digit measured move.
- 200-day simple moving average (SMA) continues to be instructive as BNB consolidates.
- Binance Coin price trading flat since the FSA and FSC bold announcements regarding Binance Exchange.
Binance Coin price is nearing a pivotal point on the charts as BNB nears the apex of an ascending triangle pattern. Strong support along the 200-day SMA has been instrumental during the pattern development. If the cryptocurrency complex cooperates, the digital asset has the potential to rally beyond the 50-day SMA at $363.49.
Binance Coin price not discouraged, follows technicals
On Friday, Japan’s Financial Services Agency (FSA) announced that Binance exchange was not registered to do business in the country. The FSA had also warned Binance in March 2018.
On Saturday, UK’s Financial Conduct Authority (FCA) issued a “consumer warning” on Binance Markets Limited (BML) and the Binance Group, stating that “Binance Markets Limited is not permitted to undertake any regulated activity in the UK.” The action relates to Binance UK and will not affect British customers accessing the platform in other jurisdictions.
No exchange wants to have regulators interceding and negatively impacting business, but Binance Coin price has reacted calmly to the events. In fact, BNB is flat since the UK announcement, continuing the construction of an ascending triangle pattern.
The BNB ascending triangle pattern has formed since the June 22 low of $224.74, with the 200-day SMA providing upward guidance. The pattern is nearing the apex, indicating that a Binance Coin price breakout is near, or the pattern will be voided.
More specifically, once the price has crossed 80% of the distance between the base and the apex of the ascending triangle pattern, the probabilities of a successful breakout decline and the magnitude of any price move are diminished. Thus, Binance Coin price is at an inflection point in the pattern progression.
The BNB ascending triangle pattern’s measured move is 29%, presenting a target of $411.15. The rally would overcome the 50-day SMA at $363.40 and press Binance Coin price against the daily Ichimoku Cloud. However, the target is below the high of the right shoulder of a potential head-and-shoulders pattern at $434.05.
BNB/USD daily chart
Upward breakouts from ascending triangles occur around 77% of the time, so there is a 20% probability that Binance Coin price will release to the downside. A resolution to the downside would require a daily close below the strategically important 200-day SMA at $274.39. If the selling accelerates, BNB is primed to test the June 22 low of $224.74.
A decline to the measured move of 29% would target $199.90, overpowering the May 23 low of $210.95. Moreover, it would cross the neckline of the larger BNB head-and-shoulders pattern leaving Binance Coin price vulnerable to significant losses.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Chainlink price still trapped in range despite exhausted macro downtrend
Chainlink (LINK) price is cooking up a recovery rally after exhausting consolidation beneath a macro descending trendline. However, it remains confined within a range in the weekly timeframe, but an opportunity for breaking out could present soon.
Bitcoin SV price rises by 30% in a day as CEO resigns amid controversy
While Bitcoin price might not have been able to note a rise over the past day, its namesake is making the most of the relatively calm market. Bitcoin SV price shot up significantly after a major development in the network’s ecosystem took place over the past few days.
SUI price crashing by 7% sets a precedent for cryptos ahead of $36 million worth of token unlocks
SUI price action fell sharply over the past day, emerging as a leader of the cryptocurrencies witnessing a price fall. This is expected to worsen as token unlocks worth $36 million are scheduled for this week.
Bitcoin price macro outlook remains uncertain, analyst says
Bitcoin (BTC) price is still not in the clear, according to analyst and trader Rekt Capital, who explores the price action on a macro perspective. It comes after the big crypto leaped almost 5%, testing the $28,600 levels before a retraction.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.