Experienced Analyst Expects Binance Coin (BNB) to Fall
Capo, an experienced cryptocurrency analyst and trader, has shared his predictions on the altcoin market. He believes that the service token of the giant cryptocurrency exchange Binance, Binance Coin (BNB), is likely to face a significant crash. Capo has taken short positions on BNB, expressing his concern about the current market trends.
Capo’s Analysis and Price Prediction for Binance Coin (BNB)
Capo uses the Elliot Wave theory to analyze the price chart of Binance Coin (BNB). According to his assessment, BNB has broken out of an upward channel and entered a downward trend. He anticipates bad news on the horizon, which could trigger a substantial drop in BNB’s price. Capo’s initial price target for BNB on the downside is $125, suggesting a potential decrease of over 48% based on current prices.
Cautionary Notes on Solana (SOL) and Bitcoin (BTC)
In addition to his concerns about BNB, Capo also warns of potential downward trends for other altcoins. Solana (SOL), a competitor to Ethereum (ETH), is the second altcoin that Capo is closely monitoring. He points out that SOL failed to hold above $30 as support, and based on his analysis, it is likely to drop to $25.36. Capo has taken short positions on SOL and plans to hold them for the medium term.
As for Bitcoin (BTC), the largest cryptocurrency, Capo utilizes the Wyckoff distribution schema to assess its price movement. He identifies a formation of a Sign of Weakness (SOW), indicating a possible downside breakout for Bitcoin in the near future.
Understanding the Wyckoff Method
The Wyckoff method is a technical analysis approach used by Capo to determine whether major cryptocurrency investors are accumulating or distributing a particular asset. An accumulation pattern suggests a period in which institutional investors control the price of an asset to buy it at low prices.
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