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Elliott wave’s rule of alteration suggests a $70 target for the Binance coin price

  • Binance coin has printed several shallow two retracements since its origin. 
  • A deep wave four correction is highly likely according to Elliot Wave theory.
  • Invalidation of the current downtrend is a breach above $357

Binance coin could fall back into September 2021 All-time highs at $70 if the technicals are correct.

Binance coin price back to $70 eventually

Binance coin price displays a few reasons to believe that a macro bottom could occur within the $70 price zone. Elliott Wave theory suggests that corrections after an impulsive wave should have alternative price action. For instance, if wave 2 is corrective, is deep in price retracement and takes little time to complete, wave four will usually be shallow in terms of a price retracement and can spend an exuberant amount of time finishing the corrective structure. 

Binance coin price displays shallow wave two corrections dating as early as 2016. Even the current impulsive rally that started post-pandemic lows portrays shallow corrections with relatively brief periods to finalize the corrective structures. Thus, a time-consuming deep wave four correction is likely for the Binance Coin price.

TM/BNB/5/13/12

A Fibonacci retracement level surrounding the $700 all-time high since the pandemic lows suggests a 61.8% retracement level at $77. The Fib levels strongly confounds the bearish macro thesis. The correction could take months and even years to play out, but it is undoubtedly a valid scenario on the cards that long-term investors should be aware of.

Still, markets rarely go down in a straight line. In the coming weeks, there could be profitable countertrend rallies for the BNB price. Invalidation of the current bearish downtrend lies at $357. If the bulls can breach this level, the BNB price could climb as high as $470, resulting in a 75% increase from the current Binance coin price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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