Binance Coin Price Analysis: 4th Wave Bear Trap Sets BNB Rally Above $700

Since last weekend, the cryptocurrency market has seen a significant surge in bullish momentum, with Bitcoin prices climbing above $62,000. Analysts attribute this rally to reduced supply pressure following the German government’s sale of BTC and the survival of former U.S. President Donald Trump after an assassination attempt. As the recovery momentum spread to the altcoin market, the Binance coin price analysis showcased a fake $500 breakdown to lure more buyers into the market.

Also Read: Binance Making Major Changes To Key Spot Pairs Amid Crypto Market Recovery

Binance Coin Price Analysis: Traps for Short Sellers and Opportunities for Buyers

The Binance coin price analysis on the daily chart reveals a pattern of uncertainty, characterized by sideways movement. Notably, the asset experienced a deceptive breakout on June 4th, from $645 resistance, followed by a misleading breakdown on July 7th. Although these price fluctuations might confuse novice traders, they align better with predictions from the Elliott Wave Theory and make better sense of current market dynamics.

If the wave counts shown in the above chart are accurate, the Binance coin price analysis shows the formation of a 4-wave known as a corrective phase.

In theory, this structure is known as a counter-trend move for buyers to recuperate the exhausted bullish momentum before the prevailing trend resumes.

On June 4th, the market participants witnessed an overthrow from $645 resistance while on July 7th, they witnessed an underthrow from $494 support. However, none of them sustained and trapped the aggressive trade from the market.

Also Read: Ethereum, BTC, SOL, XRP Sees Record Inflow, Bull Run To Continue?

According to the theory, the false breakdown at the $500 horizontal level effectively trapped short sellers and offered potential buyers an opportunity to purchase at lower prices.

Thus, the Binance coin price analysis shows an immediate reversal to $577, registering a growth of 23%. Consecutively the market cap jumped to $1.97 Billion.

As per the Fibonacci extension tool, the potential target for the 5th impulse wave could be $775, followed by $974.6.

Technical Indicator:

• EMAs: The BNB price back above the 200D Exponential Moving Average slope restores the broader bullish outlook in this asset.
• Vortex Indicator: A potential bullish crossover between the VI+(blue) and VI-(pink) slope will accelerate the bullish momentum in price recovery.

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