A widely followed crypto trader is warning that Binance Coin (BNB) is on the verge of collapsing against Bitcoin (BTC).
Bluntz tells his 224,500 followers on the social media platform X that the BNB/BTC trading pair has formed a bearish swing failure pattern (SFP).
A swing failure pattern in an uptrend typically occurs when price makes a series of higher highs and higher lows, but at some point fails to make new highs and sell-side pressure begins to mount, hinting at a bearish reversal.
“BNB is still top of the priority list for shorts. [There was a] savage SFP on BNB/BTC yesterday and the USD pair simply looks like an A-B-C [correction] up still.
Also, [BNB] has the most horrendous high timeframe chart in my opinion.”
An ABC correction, part of Elliot Wave theory, is a simple three wave move in the opposite direction of the trend. In this case, Bluntz thinks BNB’s strength in late August was a correction upward in its longer term downtrend.
Looking at the trader’s chart, he suggests that BNB could decline below the key $200 level around September 2nd, retest the $210 level near September 4th and then decline to about $196 by September 6th.
The trader’s bearish BNB prediction dates back more than eight months ago.
He previously said,
“I think the five-year uptrend in BNB/BTC has come to an end. IMO it comes down at minimum another 40%-50% from here. [I] genuinely don’t even know where that would put the BNB/USD price but I’ll be avoiding this coin like the plague from here. GL (good luck) if you hold it.”
He also suggested months ago that BNB could decline to as low as $80, which would be a more than 63% decline from its current value.
“If I had to guess, USD pair is heading to between $80-$100.”
BNB is trading for $217 at time of writing, down 2.3% in the last 24 hours.
Generated Image: Midjourney