Binance Coin is up by 5.7% today and 17% from its last low on December 18. This is part of a larger uptrend that started on November 28, when the price fell from a high of $275 on November 20 to $223.
As it makes new strives and is being traded for $275, it is getting close to surpassing its November 20 high. Considering that it reached a higher low on November 28 compared to its October 11 one of $204, this could validate its larger uptrend starting.
But it is getting close to its horizontal resistance, slightly above $283. Can it push past it and continue more strongly to the upside, finally breaking out from its consolidation range?
The BNB daily chart shows that the price has already formed the first higher high on November 20, followed by the first higher low on November 28. According to our count, these are the first two sub-waves of the larget five-impulse, in which there is a possibility that the current rise is wave 3.
The price is now eyeing a 1.618 Fibonacci extension level at $336, which is at the midpoint of the most significant horizontal resistance above and is still 24% off. The determining factor of whether or not it is headed in this resistance zone would be a breakout above $283, the next horizontal resistance in line.
If it surpasses $283, the likelihood of it going to $336 would increase dramatically, implying that the price of BNB is headed eventually to a breakout above its consolidation zone.
Zooming further on the daily chart, we can see that this consolidation zone lasted since June 2022 and was held by this horizontal resistance at up to $360. This is why a breakout above this area would signal an undeniable start of the bull cycle for the price of BNB.
It is still too early to think so, but today’s attempt to make a higher high looks promising. Even though further confirmations are needed, the wave structure from October 11 points out at the larger starting uptrend in a five-wave manner.
The price of Binance Coins has consolidated in this range from June 18 last year, marking 481 days of sideways movement. A decisive move would be expected to start one way or the other, meaning even if the price finds resistance at $283 and falls, it would only mean that it is headed for one more support retest before a breakout can be made.
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