Binance Coin Price Will Rise 20% As BNB Consolidation Comes To An End
- Binance Coin price is consolidating below a falling resistance level and a support level at $407.7.
- A break of this consolidation could result in a 20% move to $504.22
- A four-hour candlestick close below $35.45 will invalidate BNB’s bullish thesis.
Binance Coin’s price is looking to break through a blockade that has held it back since December 2021. As BNB retreats below this hurdle, a breakout appears to be the most plausible outcome.
Binance Coin price is waiting for a catalyst
Binance Coin price has retested the downtrend line four times since December 28, 2021. The last two retests resulted in consolidation between this hurdle and a support level at $407.70. A breakout of this sideways move will likely be accompanied by a massive spike in volatility.
Interested investors could go long in BNB on a breakout around $430 and take partial profits at $453.48. The remaining position can be unloaded at $504.20, bringing the total to 20%. This breakout is the first scenario and is a bullish approach.
In a conservative approach, investors can expect Binance Coin price to retrace to the $392.17 support level and make a run for the breakout. In this scenario, market participants can enter a long position at the retest of $392.17 and take profits at $453.48 and $504.20. This move, however, would represent a 28% gain for the price of Binance Coin.
BNB/USDT 4 hour chart
While things look bullish for Binance Coin price, a breakdown of the $392.17 support level will complicate matters. A four-hour candlestick closing below $357.46 will create a lower low and invalidate the bullish thesis.
Such a development will pave the way for market makers to push Binance Coin’s price to $336.30 or lower to collect liquidity below the double bottom formed in January.