Binance Coin (BNB / USD) is gearing up for a massive upward move in the upcoming sessions, a trend that could see the exchange rate rise above USD 450.
The analogy comes from an independent analyst on Twitter who works under the pseudonym Crypto Kaleo to distribute the daily updates of the cryptocurrency to its 142,000 followers. Kaleo predicts a wild upward rally for the BNB / BTC instrument when comparing the pair’s current price action to last month’s – which caused a parallel instrument, the BNB / USD to hit its current record high of $ 422.
The breakout mood
In February 2021, BNB / BTC hit a new high in a breakout move that followed a consolidating move below a descending trendline and pattern top (0.0032 satoshis). After hitting 0.0067 satoshis as a breakout target, the pair began again to consolidate under a new descending trendline pattern. Only this time the cops waited days before chasing an outbreak upwards.
Later, the BNB / BTC pair consolidated near the level that coincided with its descending trendline at 0.0067 satoshis.
“The first in mid-February was almost vertical after that,” said Crypto Kaleo, citing the table as shown below. “I’m expecting something similar here, albeit probably a little slower given the higher market cap / longer accumulation period previously.”
Note that both ATH bursts had massive wicks / shakeout candles. Source: BNBBTC on TradingView.com
The analysis showed that under the influence of Bitcoin, the cryptocurrency market overall ran the risk of a smaller correction. The BTC / USD exchange rate failed again to break out above USD 60,000. Traders liquidated their upward positions to seek short-term gains and dropped the pair to just $ 55,400 on Wednesday. It tried to rebound this Friday, albeit at weaker volumes.
The fundamentals of the BNB are usually based on the Bitcoin market. The correlation efficiency between the two assets is currently 0.75. The general market consensus for Bitcoin is bullish. This means that Binance Coin also has the chance to match the flagship cryptocurrency on their winnings.
BNB / USD
Kaleo noted other similarities in BNB / USD price movements in February 2021 and now.
Binance Coin outlook from mid-February. Source: BNBUSD on TradingView.com
and in April 2021:
Outlook for Binance Coin in April 2021. Source: BNBUSD on TradingView.com
“Very similar too,” explained Kaleo, “both accumulated / accumulated slightly higher than the ATH they recently broke.” “Keep playing as you did in the time above. Anytime I expect a surge outside of this range to a new all time high and a new price discovery. “