Recent developments are pointing to a potential correction in the near-term value of Binance Coin (BNB).
Last week was a mixed bag for BNB. On one hand, the Binance-SWIFT partnership saw a significant change with the announcement that customers would not be able to promote or purchase property worth less than $100,000. This was attributed to one of the crypto exchange’s banking partners, though the name of this partner has not been disclosed. On the other hand, Binance CEO Changpeng Zhao revealed that he was holding a small portion of his B token reserves in the same wallets as customer funds.
The most recent bearish news has come from Russian crypto exchange Bitzlato, who has reported that it could be facing difficulties for $346 million in transactions.
Binance Coin Reaches Range of All-Time High
Weekly technical analysis shows the Binance Coin price moved above the $250 horizontal support level after deviating from it on May 2021 (green circle). This surge brought the price to a high of $398, before it then fell, producing a long upper wick and confirming the $360 area as a resistance level.
Since then, BNB values have remained within this range. The bullish move that created the present low is considered a positive sign, as it is the first indication that the current downtrend could be coming to an end from the all-time high.
Furthermore, the weekly RSI has risen to 50 and is now bullish, and it also broke through a descending resistance line. This confirms that the BNB price could rise towards the $360 resistance area once again.
However, a weekly close below $250 would invalidate the bullish price forecast, and the BNB price could drop to the June 2022 low at $200.
Binance Coin Value Prediction for February: Correction in Progress
Although the weekly chart suggests a bullish outlook, the daily chart points to a bearish view. The daily RSI produced a bearish divergence over the last 24 hours, which is often a precursor to a downturn.
Wave counts indicate that a preliminary correction is likely. This has resulted in a short-term rise in Binance Coin’s value. It is unclear whether this move is part of wave A (black) or a longer-term, more serious wave (red).
These counts are not distinguishable in terms of their long-term motion. They merely suggest a short-term decline.
If the BNB price drops below the 0.618 Fibonacci Retracement support level at $260, the corrective (black) count becomes more apparent. However, if it creates another lower low, the bullish (red) count becomes the primary count.
To sum up, the likely Binance Coin price prediction for February is a short-term correction followed by a long-term bullish move. A drop below $221 would invalidate this bullish forecast and send the BNB price to $200.
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