Binance Coin (BNB), the fourth-largest cryptocurrency by market capitalization, has seen a surge in recent weeks following the release of former Binance CEO, CZ, who was detained for four months due to U.S. money laundering allegations. However, the subsequent spike in liquidations raises questions about the sustainability of BNB’s upward trend and whether a correction is imminent before the typically bullish Q4 market.
A Closer Look at BNB/USDT
Analyzing the BNB/USDT pair on the 4-hour chart reveals a consistent uptrend over the past three weeks. While the recent price surge to $620 might indicate a temporary pause, the formation of a double top at this level suggests a potential retracement. If the price breaks below the double top’s neckline, BNB could correct down to the $560 or even $540 level, aligning with the 0.382 Fibonacci Retracement level.
Bullish Q4 Outlook and Buying Opportunity
Despite the potential correction, the overall bullish outlook for the crypto market in Q4 suggests that a retracement to $560 could present a lucrative buying opportunity. Investors could aim for a 40% return on investment as BNB climbs to $800.
Also Read: Binance Coin (BNB) Up 9% – Can It Break Through $600 Resistance For A Major Rally?
Market Metrics Indicate Potential Correction
Several market metrics support the possibility of a correction. Net longs shorts delta, open interest, and whale vs retail delta have all seen a decline, indicating reduced buyer momentum, decreased market participation, and a potential shift in whale sentiment.
While Binance Coin has exhibited strong upward momentum, the recent price surge and market indicators suggest a potential correction in the near future. However, the bullish Q4 outlook and the alignment of the $560 level with the 0.382 Fibonacci Retracement present a potential buying opportunity for investors seeking substantial returns.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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