Why Binance Coin Price Could Drop Below $300
- Binance Coin price is approaching a major capitulation zone.
- Significant downward pressure to levels not seen since March 2021 is increasingly likely.
- The bulls have little time to avoid a major crash.
Binance Coin’s price, like the rest of the cryptocurrency market, is at risk of a major crash if it fails to hold onto its latest support levels.
Binance Coin’s Price Action Is About To Drop Another 40%
Binance Coin price has one main support structure on its weekly chart: the $340-$360 value area where the bottom of the Ichimoku Cloud (Senkou Span B) is located and the 2021 volume control point.
Almost all the conditions for an ideal bearish Ichimoku breakout of Binance Coin price are met:
- The current fence is below the Tenkan-Sen and the Kijun-Sen.
- The Tenkan-Sen under the Kijun-Sen.
- The future Senkou Span A is less than Senkou Span B.
- Chikou Span is below the candlestick bodies and in open space (a condition in which the Chikou Span will not horizontally intercept a candlestick body for the next five to ten periods).
- The current fence is under the Cloud.
The only missing condition is number five. A close at $359 or lower would confirm an ideal bearish Ichimoku breakout. Additionally, a close at $359 would put BNB below the final major support of the 2021 High Volume Node. From there, Binance Coin price could crash towards the 100% Fibonacci expansion at $231 .
Ichimoku Kinko Hyo Weekly Chart BNB/USDT
If Binance Coin price bulls want to invalidate any short-term bearish outlook, they will need to pursue a weekly close above the Ichimoku Cloud at $444 or higher. If this happens, the start of a new uptrend may not be far away.