An analyst who bottomed out on Bitcoin (BTC) in 2018 predicts an epic crash for Binance Coin (BNB), the utility token of the world’s largest crypto exchange.
Pseudonymous analyst Smart Contracter tells his 216,900 Twitter followers that he believes Binance Coin’s bullish trend against Bitcoin (BNB/BTC) has come to an end.
“I think the five-year bullish trend in BNB/BTC has come to an end. In my opinion, it is reduced at least another 40-50% from here.”
Smart Contracter is based on Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following the crowd psychology that tends to manifest in waves. Looking at the analyst’s chart, it appears that BNB/BTC has completed the five wave cycle of theory and looks set for a reversal towards the 0.618 Fibonacci level to 0.007378 BTC ($123.33).
At the time of writing, BNB/BTC is changing hands for 0.014369 BTC ($240.19).
According to the crypto strategist, the BNB/BTC chart resembles the price action of Terra (LUNA) before its implosion in May.
“The same vibes.”
Looking at BNB against the US dollar, the crypto analyst predicts a massive devaluation of more than 66% for Binance Coin after it broke key diagonal support.
“If I had to guess, the USD pair is headed for between $80 and $100.”
At the time of writing, BNB is trading at $240, up more than 5% in the last 24 hours.
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Featured image: Shutterstock/betibup33