BNB Price Rebounds After 45% Fall in 61 Days – Is New All-Time High Possible?
What to Make of the BNB Price Pullback?
Key Takeaways
- The BNB price fell 45% after reaching a new all-time high of $721.80 on June 6.
- Despite its decline, BNB has regained its footing and is now 25% below its all-time high.
- Has the BNB correction ended, or will the price create a lower high and fall again?
BNB reached a new all-time high price of $721.8 on June 6. What followed was a 45% decline in 61 days, taking BNB to $400 on Aug.5. Nevertheless, the price has shown admirable resilience since then, recovering more than 30%.
The strength of the bounce raises the question: Is the correction over, paving the way for a new all-time high, or is the increase merely a relief rally?
BNB Correction Could be Over
The three-day BNB chart implies the price of BNB has finished its correction.
This is because the wave count shows a complete fourth wave pullback, which validated both the 0.618 Fibonacci retracement support level and the resistance trend line of an ascending parallel channel connecting the first two waves.
The price action is also bullish, showing a long lower wick (white icon) and reclaim of a horizontal support level at $500.
Finally, the three-day RSI has generated a bullish divergence (green). Such divergences in the 3-day time frame are rare and become even stronger when combined with the other bullish readings.
The only issue with the count is that wave four is relatively short compared to wave three. However, this is not enough to invalidate the count.
If wave five has started, the first target for the top is at $920. The 1.61 external Fibonacci retracement of wave four gives this target, an increase of 73% from the current price.
BNB Price Falls After All-Time High
In the first week of June, BNB broke out from a descending resistance trend line that lasted more than 1,100 days. The trend line had been in place since the all-time high of May 2021.
After the breakout, BNB reached a new all-time high price of $721. However, it has fallen since, almost returning to the descending resistance trend line. While this BNB price action can be considered a standard pullback after a breakout, the BNB price risks creating a bearish engulfing candlestick.
Furthermore, the MACD and RSI have both generated bearish divergences in the weekly time frame. A bearish divergence in such a time frame often catalyzes a bearish trend reversal.
So, while the trend can still be considered bullish as long as the price does not close below the resistance trend line, technical indicators show weakness.
What’s Next for BNB?
The wave count implies the upward movement since June 2022 has ended. Explicitly, it suggests the price has completed wave three in a five-wave increase (white) and has started a lengthy correction.
If the prediction is accurate, BNB will decrease toward the 0.382-0.5 Fibonacci retracement support levels at $462 – $524.
Just like the weekly time frame, the 3-day RSI and MACD have generated bearish divergences, a sign associated with market tops.
The sub-wave count (black) shows an extended wave three. It also aligns with the long-term movement, because it reveals a breakout from a fourth wave triangle, which is the most common pattern for a fourth wave.
Finally, the all-time high nearly gave wave three 2.61 times the length of wave one, common in an extension. As a result, when combined with the weakness show in technical indicators, the wave count implies the BNB price has reached its top.
Despite this bearish BNB price prediction, increasing above the $729 high will mean sub-wave five has also extended. Then, the ensuing increase could take the BNB price to the next Fibonacci target at $947. At the current time (Aug 19. 2024), this remains unlikely.
BNB Can Reach New All-Time High
The magnitude and sharpness of the decrease after the all-time high suggest the BNB price completed the third wave of its upward movement. Then, the ensuing bounce and indicator readings imply wave four has also concluded.
If this is the case, BNB will increase toward a new all-time high, possibly reaching $920 to complete the current market cycle.
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