The Binance Coin (BNB) price has generated short-term weakness that could lead to an initial correction.
There was numerous Binance news last week, not all of which was positive. From Feb. 1, Binance users will be unable to either buy or sell assets valued at under $100,000. This is a massive change in the Binance-SWIFT relationship. The crypto exchange blamed this decision on one of its banking partners, which, however remained unnamed. It is possible that this occurred after Signature Bank dropped Binance.
Next, Binance’s CEO Changpeng Zhao admitted that it held some of its B-token reserves in the same wallet as its customer funds.
Finally, the last negative Binance news is that the cryptocurrency exchange could be in trouble for facilitating $346 million worth of transactions for the Russian exchange Bitzlato.
Binance Coin Approaches Range High
The weekly technical analysis shows that the Binance Coin price moved above the $250 horizontal support level after straying below it in May 2021 (green circle).
After that, it rose to a high of $398 before falling, producing a lengthy upper wick and confirming the $360 region as a resistance level.
The price of BNB has remained stable within this range ever since. Compared to the lows in May 2021, the current upward movement produced a higher low, which is regarded as a positive indicator. This is the first indication that the current downward trend since the all-time high might end.
Additionally, the weekly RSI is optimistic as it has climbed above 50 and broken out from a descending resistance line. This validates the idea that the BNB price is expected to rise toward the $360 resistance area again.
However, a weekly close below $250 would invalidate this bullish price forecast, and send the BNB price would be expected to reach $200, reaching the minimum price of June 2022.
Binance Coin Price Prediction for Feb: Correction Underway
Despite the bullish readings in the weekly time frame, the daily chart provides a bearish Binance Coin price prediction for Feb. The daily RSI generated bearish divergence (green line) over the past 24 hours. Such divergences often precede downward movements.
Next, the wave count suggests that an initial correction is expected. This is because the Binance Coin price has completed a short-term upward movement. However, it is not clear whether the move is part of wave A (black) or a longer-term wave one (red).
However, the counts only differ in their long-term movement since predict a short-term decrease.
If the BNB price decreases below the 0.618 Fib retracement support level at $260, the corrective count (black) becomes more likely. If, however it creates a higher low above it, the bullish one (red) will become the primary count.
To conclude, the most likely Binance Coin price prediction for Feb. is a short-term correction followed by a long-term upward movement. A decrease below $221 would invalidate this bullish price forecast and send the BNB price to $200.
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