Binance Coin Price Pattern Set for Breakout is $900 Inevitable?

Jun 1

The native coin of the crypto currency exchange Binance (BNB) price has been in a close consolidation phase for nearly 13 weeks. With each passing daily candlestick close, BNB gets squeezed more, suggesting a steady decline in volatility. These types of continuous consolidation in price actions are usually followed by a massive breakout, and that’s what awaits BNB.

Binance Native Coin BNB price Sets for Breakout
Binance Coin price spike up 63% between March 6 and 16, setting up a local top at $646. This impressive uptrend, which only took BNB ten days to go from $394 to $646, was followed by a consolidative phase that exists as of Saturday.

Despite the price action from March 6 to June 1 shows the formation of a bullish continuation pattern known as a "Bullish Pennant". The aforementioned 63% rally is the flag pole, and the sideways movement that produced lower highs and higher lows is the pennant.

The forecast for this setup is determined by adding the flag pole's height to the breakout point. In Binance Coin’s case, assuming the breakout occurs at $616, the flag pole’s height shows that the Bullish Pennant target for BNB is $900. This ambitious target is roughly 45% away from the all-time high of $692.90.

However, if the market outlook worsens, sending Bitcoin (BTC) price down to $60,000, then it could disrupt the Binance Coin (BNB) price movement, leading to a bearish breakout. This move would invalidate the bullish pennant pattern. In such a case, BNB could slide 9% and retest the $526 support level. A daily candlestick close that flips this support into a resistance level, would validate the potential start of a downtrend.