Binance Coin (BNB) Surges 21% in 90 Days, Bullish Pattern Suggests Further Gains

Binance Coin (BNB) has been gaining traction in the cryptocurrency market, with a 7% increase over the past week and a 21% rally over the past 90 days. This upward momentum has been driven by a bullish trend in the broader cryptocurrency market, with Ethereum (ETH) posting a 9% daily gain and trading above the $3,400 mark. The emergence of a textbook harmonic ABCD pattern on the daily chart of BNB has further fueled speculation of a potential rally.

The harmonic pattern, known as a Bearish ABCD, typically signals a bullish continuation until the pattern completes. The pattern began at point A at $534.30 in April, rallied to point B near $709.40, and then corrected down to point C around $601.25 in late June. BNB is now trading near $718 as it progresses through the CD leg, the final stretch of the harmonic pattern. According to the harmonic projection, the 1.70 Fibonacci extension of the BC leg suggests a possible move toward $764.68, which also mirrors the length of the AB leg and represents the Potential Reversal Zone (PRZ).

If the pattern continues to unfold as expected, BNB could gain an additional 6–7% from current levels before encountering significant resistance at the PRZ. This area near $764.68 may attract profit-taking activity, especially from short-term harmonic traders. The broader market's bullish lean and BNB's clear harmonic pattern among top altcoins make it a strong candidate for further upside in the short term. Traders are now watching to see if BNB can push toward the $760+ mark and how it reacts once it gets there.

In addition to the harmonic pattern, BNB has also been exhibiting a classic double bottom pattern on short-term charts, which is a bullish reversal pattern. This pattern, characterized by two consecutive lows that are roughly equal, followed by a rally that breaks above the resistance level formed by the highs between the two lows, further supports the potential for a significant rally in the near future. The recent 32nd quarterly burn of BNB tokens, which removed $1 billion worth of tokens from circulation, has also driven the price surge above $670. This reduction in supply, combined with the bullish technical indicators, could provide the necessary catalyst for a sustained rally in BNB's price.

However, it is crucial to remember that the cryptocurrency market is highly volatile and unpredictable. While the technical indicators and recent developments on the BNB Chain suggest a potential upside move, there is no guarantee that this will materialize. Traders should exercise caution and conduct their own analysis before making any investment decisions. The formation of the Bearish Bat harmonic pattern, the classic double bottom pattern, and the recent quarterly burn of BNB tokens all point to a potential upside move for BNB. Nevertheless, traders should remain vigilant and conduct their own analysis before making any investment decisions.