Binance (BNB) is unloading a trend wave that could reach $1500 within the next few months. Using Elliott Wave Theory as our guide, we inspect the market’s trends (called waves) to determine where we are within the 8-wave Elliott wave sequence.
Within the idealized 8-wave structure, the market rallies in five waves followed by a three wave setback labeled A-B-C. The crypto market is also fractal, so the patterns we see for larger trends also appear within the smaller trends too.
Considering a starting point of the March 2020 pandemic low for BNB, it appears the five wave advance is incomplete with only four waves knocked out.
This implies BNB is now rallying in a fifth and final wave of the advance before embarking upon a more meaningful setback.
One awesome aspect of market analysis with Elliott Wave Theory is that there is a market geometry at play. The waves and the trends are related to one another. Therefore, we can reasonably estimate how far this larger fifth wave might carry.
Many times, wave 5 and 1 are related by a fibonacci distance or they are equal. When we apply this to the chart above, wave 5 equals the distance of wave 1 at $741. A nice gain but still a little on the small side for typical fifth waves.
Wave 5 is 1.618 times the length of wave 1 at $1435.
Additionally, wave 5 target estimates can be generated using the distance of waves 1-3. For example, 38.2% the distance of waves 1 through 3 appears near $1524.
When we mix these ingredients together, a fairly tight cluster of target prices is created near $1500. Therefore, it would be common for a market of BNB’s structure to rally from here to near $1500 before finding a more meaningful top and correction.