Why BNB coin price may reach generational peak vs Bitcoin

Binance Coin (BNB) price has been rejected by a long-term horizontal resistance area. It also follows a short-term resistance line.

The BNB price has been falling since reaching an all-time high of $691.80 in May 2021. The downward movement accelerated after the Binance Coin price made a lower high in November of the same year.

In May 2022, BNB price broke down from the horizontal area with an average price of $240. The area had provided support since September 2021.

Now it has turned to resistance and rejected the November price, creating a massive bearish engulfing candlestick (red icon). While this caused a sharp drop, the Binance Coin price rebounded with a bullish engulfing candlestick after two weeks (green icon).

As a result, the technical analysis from the weekly timeframe gives a mixed outlook, leaning bearish. The price movement can be seen as bearish despite the bullish engulfing candlestick, as the BNB price is trading below resistance. On the other hand, RSI is neutral.

BNB Price completes correction

The short-term six-hour chart also provides a bearish outlook for two reasons.

First, Binance Coin price appears to have completed an ABC corrective structure (black), where waves A:C had a ratio of 1:1.61.

Second, the BNB price is following a descending resistance line. The line caused a decline on November 26 (red icon). Afterwards, the price movement in December 2022 has been bearish. There has also been a slight decrease in the last 24 hours.

The short-term trend is considered bearish as long as the line is in place. If both parts of the BNB decline have the same height (highlighted), the price could fall to $220.

BNB/BTC Top Soon?

The BNB/BTC pair has been on a long-term uptrend since August 2017. The highest price reached so far has been ₿0.0197, which is an all-time high.

The most likely number suggests that BTC is in sub-wave five (black) of wave five (white). As a result, the entire upward movement may end soon.

The first potential target for the top of the move is at ₿0.021, created by the 2.61 external retracement of wave four. The goal is probably also because it will give sub-waves one and five a ratio of 1:1.

Currently, there are no clear bearish signs outside of the long upper week after the all-time high (red icon).

Bearish divergence in the RSI reaches the BNB price when the target will confirm that a top is in place. If so, the BNB price could fall to the wave four territory of ₿0.008.

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