Key Takeaways
The BNB price has experienced significant movements this year, marked by a peak at $640 in March and a subsequent downtrend.
The formation of ascending triangles has highlighted consolidation phases, leaving the market at a crossroads.
A breakout from these patterns will provide crucial insights into BNB’s future direction.
Following a peak of $640 on March 16, BNB began forming an ascending triangle, signaling a period of consolidation and suggesting that it might be preparing for a continuation of its uptrend, which started back in October.
Based on Elliott Wave Theory, this pattern could represent the fourth wave in a five-wave sequence.
In early June, BNB briefly hit a new yearly high of $721, but it quickly retraced to the ascending support at $610 before breaking below it on June 17.
The downtrend followed a three-wave structure, bottoming at $400 on Aug. 5. After finding support at this level, BNB started recovering, forming another ascending triangle with horizontal resistance near $600.
This leaves two main possibilities. First, BNB may have completed its five-wave impulse on June 6 and is now in a major corrective phase.
Alternatively, the spike on June 6, despite hitting a new high, could be part of a larger sideways movement that began in March. If the Aug. 5 low marks the end of this consolidation, it could signal the beginning of an upward move toward a new all-time high above $800.
As the price nears the apex of the latest ascending triangle, the direction of the breakout will offer critical insights.
However, a deeper correction might be on the horizon, given BNB’s struggle to break above $600 recently and since March.
In both scenarios, BNB likely found its bottom on Aug. 5, as indicated by wave analysis. The ongoing recovery could either be part of a corrective wave or the start of a new impulsive move toward a fresh all-time high.
The ascending triangle’s horizontal resistance interaction occurred, and BNB was rejected as it quickly made a downturn.
In addition, the triangle’s wave structure does not have a clear five-wave pattern, which supports the potential for an upward breakout.
Despite this, there’s still a chance that BNB could form a new all-time high after another short-term decline.
A drop to around $450 seems likely in the near term. Since Aug. 5, the rise has been classified as an ABC correction, with the downtrend from the $616 high on Sept. 27 marking the first sub-wave to the downside.
This uptrend is a corrective wave within this downward sequence, suggesting another downturn is imminent. If BNB surpasses its previous high, the wave count will be invalidated.
At this point, the market is highly indecisive. Waiting for BNB to break out of its current ascending triangle will provide a clearer direction for its next move.