Binance Coin (BNB) has regained its foothold after almost two weeks of price losses and could soon try to reach a new all-time high.

Day outlook

The BNB has been rising along with an ascending support line since May 23. The initial upward move was quick, but the token stalled between late August and late October.

However, earnings accelerated after the BNB (green circle) broke above the descending resistance line (dashed line). That move helped the price close to a new all-time high, culminating in a high of $ 669 (red symbol) on November 7th.

Even so, it was rejected from the USD 670 (red symbol) resistance area and has been falling since then.

BNB / USDT daily chart | Source: TradingView

Trader @TradingTank sketched a chart from BNB indicating that the token has created a false bottom and could rise to a November high of $ 670.

The source: Twitter

Future movement

The short term chart shows that the BNB is facing resistance at $ 610. This is the 0.618 fib retracement level and the horizontal area of ​​resistance.

Although the token was rejected by this zone on November 21st, it looks like it will break out at some point.

This is because the decline that began on November 7th looks like a three-wave corrective structure. This is particularly evident due to the overlap (red symbols) between the November 10th low and the November 20th high.

Hence, the decline looks like a correction in an uptrend.

BNB / USDT 6-hour chart | Source: TradingView

If the token breaks above ATH, the next resistance will be at $ 980. This is the external fib retracement resistance of 1.61.

Additionally, it looks like BNB is in wave three (yellow) of a 5-wave bullish pulse. Wave three is usually the hottest of the upward waves.

A rally to $ 1,000 would give wave A: C a ratio of exactly 1: 2.61, which is the second most common after 1: 1.61.

Therefore, the $ 980-1,000 zone could be where BNB hits a local high due to the Fib resistances clash.

BNB / USDT daily chart | Source: TradingView

You can see the BTC price Here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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