- Binance Coin price has been consolidating for roughly ten days, hinting at a massive move.
- A breakout move is likely going to propel BNB to rally 18% to fill the FVG at $453.86.
- A four-hour candlestick close below $336.30 will invalidate the bullish thesis.
Binance Coin price saw a massive flash crash between January 20 and January 22, which was a result of the crypto market crash. While many altcoins have recovered after this slump, BNB has coiled up for the last ten days, suggesting that a massive bounce is on its way.
Binance Coin price prepares for liftoff
Binance Coin price dropped roughly 30% between January 20 and January 22. This sudden drop was spread across all cryptocurrencies and many altcoins have recovered above the January 20 levels.
However, BNB seems to be taking its time as it has continued to coil up for the last ten days. This consolidation and squeeze in price action suggest that Binance Coin is setting up the stage for a massive uptrend.
The Fair Value Gap (FVG) extending from $402.53 to $453.86 further adds a tailwind to the breakout thesis. Therefore, investors can expect the Binance Coin price to rally at least 18% to $453.86. In some cases, the market participants can expect this rally to extend to the 200-day and 50-day Simple Moving Average confluence at $466.68, bringing the total run-up to 21%.
BNB/USDT 4-hour chart
On the other hand, if the Binance Coin price fails to move higher, there is a good chance it will slide lower and retest $357.45. A breakdown of this barrier could see BNB sweep below the $336.30 support level and the liquidity resting below.
While market makers might push BNB to sweep below $336.30, a prolonged price action below the barrier will invalidate the bullish thesis for Binance Coin.