Trader Predicts ‘Fireworks’ for Blue-Chip Altcoin if Critical Support Area Is Reclaimed, Updates Bitcoin Outlook
A widely followed analyst and trader says a top-five altcoin by market cap could rally higher if it overcomes a key resistance zone and turns it into a support area.
The pseudonymous analyst known as Rekt Capital tells his 379,700 followers on the X social media platform that if Binance Coin (BNB) turns the resistance level at $340 into a support level, “the fireworks will really begin” for the fourth-largest crypto asset by market cap.
From Rekt Capital’s chart, it appears that BNB has broken out of a descending triangle on the weekly chart and has solidly established itself above the hypotenuse of the pattern. While a descending triangle pattern is typically bearish, a successful break above the hypotenuse indicates the start of a bullish trend.
BNB is trading at $320 at time of writing, up by nearly 20% over the past week.
Next up is Bitcoin (BTC). According to the pseudonymous analyst, there are “just over 100 days” left before Bitcoin undergoes its fourth halving which is scheduled for April of 2024.
“Any deeper retraces in the pre-halving period would be ultimate bargain-buying opportunities [for Bitcoin].”
From Rekt Capital’s chart, it appears that Bitcoin has broken above the upper trendline of an ascending triangle, a pattern that typically indicates bullishness. According to the same chart, Bitcoin underwent significant correction just prior to the third halving in 2020 and it consequently rallied to break above the then all-time high that same year.
Bitcoin is trading at $42,849 at time of writing.
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