Binance Coin (BNB), the native cryptocurrency of Binance Exchange, has emerged as a major player in the crypto market. With a Q2 2022 trading volume of $7.6 billion and a current market cap of $48.2 billion, BNB serves multiple utilities—from discounted trading fees to payments on Binance Chain. This analysis explores the BNB/BTC pairing through an Elliott Wave lens, identifying critical patterns and future price trajectories.
Weekly Elliott Wave Analysis of BNB/BTC
The weekly chart below illustrates BNB prices denominated in BTC, revealing key Elliott Wave structures:
Historical Wave Progression (2017–Peak)
- Wave ((1)): Rally from all-time lows to 0.0048
- Wave ((2)): Correction to 0.0010
- Wave ((3)): Extended surge to 0.0123
- Wave ((4)): Pullback to 0.0091
- Wave ((5)): Final push to 0.0197 (peak)
Current Market Structure (Post-Peak)
5 Swings Down: Incomplete bearish pattern suggesting further downside.
- Scenario 1: Double-three correction (7 swings) targeting 0.0058–0.0099 before reversal.
- Scenario 2: Three-wave bounce (wave ((B))) preceding wave ((C)) decline.
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Critical Levels to Watch
- Resistance: 0.0163 (first degree), 0.0197 (second degree).
- Support Zones: 0.0099–0.0058.
Key Takeaways
- Bearish Bias: Lower extensions likely unless resistance breaks.
- Utility-Driven Demand: BNB’s expanding use cases may cushion long-term declines.
FAQ Section
1. What is Elliott Wave Theory?
A technical analysis framework identifying repetitive market cycles driven by investor psychology.
2. Why analyze BNB/BTC instead of USD pairs?
BTC-denominated charts reveal BNB’s relative strength against the crypto benchmark.
3. How reliable are these wave projections?
Elliott Wave offers probabilistic scenarios—always confirm with volume and fundamentals.
4. Could BNB outperform BTC soon?
Possible if wave ((B)) correction exceeds 50% of the prior decline.
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Conclusion
The BNB/BTC chart shows a completed bullish impulse followed by a bearish correction. Traders should monitor the 0.0058–0.0099 zone for potential reversals or continuation patterns. While short-term risks lean downward, BNB’s utility and burn mechanism provide long-term value support.