Analysts who spotted Bitcoin’s (BTC) 2018 low are predicting an epic collapse for Binance Coin (BNB), the utility token of the world’s largest cryptocurrency exchange.
The pseudonymous analyst Smart Contracter has told his 216,900 Twitter followers that he believes the multi-year upward trend of Binance Coin against Bitcoin (BNB/BTC) has come to an end.
“I think BNB/BTC’s 5-year uptrend is over. In my opinion, at least another 40-50% drop from here.”
Smart contracts rely on the Elliott Wave theory. This is a technical analysis approach that attempts to predict future price action according to the herd mentality that tends to emerge in waves. Looking at the analyst’s chart, BNB/BTC appears to have completed his 5 wave cycle of theory and looks poised to reverse towards the 0.618 Fibonacci level at 0.007378 BTC ($123.33) increase.
At the time of writing, BNB/BTC is trading at 0.014369 BTC ($240.19).
According to crypto strategists, the BNB/BTC chart resembles the price action of Terra (LUNA) before its crash in May.
“Same atmosphere.”
Looking at BNB against the US dollar, crypto analysts predict a significant devaluation of over 66% after Binance Coin breaks the key diagonal support.
“If I had to guess, the US dollar pair is headed somewhere 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
