How to trade the next 20% upswing in Binance Coin price
- Binance Coin price is consolidating around $311 for roughly a week.
- Investors can expect BNB to trigger a 20% upswing to $370 and fill the price inefficiency.
- A daily candlestick close below $285 will invalidate the bullish thesis.
Binance Coin price is on a recovery rally and shows promise of a further uptrend. Adding credence to this run-up is the price inefficiency that is likely to propel BNB higher.
Binance Coin price on a streak
Binance Coin price crashed to $205 on May 13 as the crypto markets crumbled due to the LUNA-UST debacle. This downswing saw an impressive recovery to $267 on the same day after a 30% bounce.
Since then BNB has been trading around the $311 level for roughly a week. Over the last 24 hours, Binance Coin price has recovered 8% of its losses and shows promise of an uptrend. Adding credence to this thesis is the Fair Value Gap (FVG) or the price inefficiency present up to $370.
Investors can expect Binance Coin price to revert to the mean and fill up the FVG. Interested traders can take this opportunity to capitalize on the upcoming run-up, which would constitute a 20% ascent.
The $356 barrier could be a pitstop that might hinder the upswing or stop the rally dead in its tracks. Either way, BNB looks primed for a good rally in the coming days.
BNB/USDT 1-day chart
Regardless of the optimism around Binance Coin price, a quick downturn in Bitcoin price could ruin the setup for BNB. In such a case, a daily candlestick close below the recently formed May 19 swing low at $285 will invalidate the bullish thesis. In such a case, BNB could revisit the $267 support level.
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.
