BNB Price Forms A Risky Pattern: Is There A Path To $1200?

BNB price has remained in a consolidation phase as the daily and weekly charts send mixed signals. Binance Coin, the fifth-biggest cryptocurrency, has remained between $665 and $600 in the past 9 days. So, does it have a path to rise to $1,200?

BNB Price Has Formed A Rising Wedge 

Binance Coin’s daily chart is sending a warning that the coin may soon have a steep bearish breakout. 

It has been forming a rising wedge pattern since September. This pattern is formed when an asset’s higher highs and higher lows converge. In most periods, an asset often forms a bearish breakout when the two lines approach their convergence.

By measuring the distance between the widest part of the wedge, we can assume that the Binance Coin price may have a bearish breakout to $400, which is about 35% below the current level. 

This BNB price forecast will be confirmed if the coin drops below the lower side of the wedge pattern at $580. On the flip side, a surge above the upper side of the wedge pattern at $665 will invalidate the bearish view and point to a jump to the year-to-date high of $721, 18% higher than the current level.

BNB Price Daily Chart

Binance Coin Is Forming A Bullish Pattern On The Weekly

On the positive side, as we have written before, BNB price has been forming a rare bullish pattern in the last three years. 

The coin initially rose to a record high of $692.60 in 2021 and then pulled back. It then rose to $667.17 and then started its downward trend, bottoming at $188 in 2022. In all this time, the coin has been forming the rare cup and handle pattern whose upper side was between $700 and $667. 

Assets tend to either consolidate or pull back after completing the formation of the cup section. This explains why the coin has remained in a tight range in the past few months. 

Supporting this view is the fact that the coin has remained above the 50-week moving average and the coin formed a long-legged doji in August. 

BNB Price Weekly Chart

Therefore, the path to $1,000 will become clearer when the Binance Coin price rallies above the year-to-date high of $721. The bullish view, on the other hand, will become invalid if the BNB token drops below the lower side of the doji at $402. Such a move will validate the rising wedge on the daily chart and point to more downside.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.