Bullish Momentum Builds as Binance Coin Price Breaks $500; What’s Next?

Binance Coin Price: Earlier this week, the cryptocurrency market witnessed a sudden sell-off which plunged the Bitcoin price to a low of $57500. While the retracement spread to the altcoin market as well, the BNB token of the Binance crypto exchange showcased a robust recovery evidenced by five green candles in the daily chart. This recent upswing led the BNB price from $385 to $528, registering 37%. Will this recovery extend if BTC breaks above $70000 on Monday?

Also Read: BNB Price Hits 2-Year High. Why is Binance Coin Rising?

BNB Price Ascend Triggered a $2.3 Million Short Squeeze

Amid the broader market recovery, the Binance coin price witnessed a steady parabolic growth since October 2023, when the price rebounded from $200. Over the past five months, the recovery uplifted the coin value by 162% to reach the current trading price of $529.

A look at the daily chart shows this upswing as the formation of a traditional reversal pattern called the rounding bottom pattern. This chart pattern indicates a slow shift in sentiment from pessimism to optimism among investors, as selling pressure decreases and buying interest increases, leading to a potential long-term increase in the asset’s price.

With an intraday gain of 8.5%, the BNB price gave a bullish breakout from the $507 key resistance, providing trading with suitable support to push higher. Recent data from the derivatives market, as reported by Coinglass, reveals that traders on Binance experienced the liquidation of short positions amounting to $2.3 million.

If the Binance coin price manages to sustain above $507 support, the buyers may drive a rally to $5700, followed by neckline resistance of $668.

Yet, the recovery path won’t be linear, as this altcoin exhibits a pattern of periodic pullbacks to gather strength for its bullish momentum.

Also Read: Just-In: Binance To Launch XRP USDT Options, XRP Price Rally Ahead?

Technical Indicator:

• Bollinger Band: The ascending movement within the Bollinger Band indicator signifies the prevailing influence of buyers on this asset.
• Exponential Moving Average: The 20-and 50-day EMA has been providing dynamic support to BNB prices for the past three months.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.