With a double-digit measured move, the Binance Coin price is completing a small ascending triangle pattern.
As BNB consolidates, the 200-day simple moving average (SMA) continues to be useful.
Since the FSA and FSC made their big comments about Binance Exchange, the price of Binance Coin has been flat.
As BNB approaches the peak of an ascending triangle pattern, the price of Binance Coin is approaching a key point on the charts. During the pattern’s development, strong support along the 200-day SMA has been crucial. The digital asset has the ability to surge past the 50-day SMA at $363.49 if the cryptocurrency complex cooperates.
The Financial Services Agency (FSA) of Japan said on Friday that the Binance exchange was not registered to conduct business in the country. In March 2018, the Financial Services Authority (FSA) issued a warning to Binance.
The Financial Conduct Authority (FCA) of the United Kingdom issued a “consumer warning” on Binance Markets Limited (BML) and the Binance Group on Saturday, noting that “Binance Markets Limited is not authorised to engage in any regulated activity in the United Kingdom.” The action only affects British users who use Binance in the United Kingdom; it has no bearing on customers who use the platform in other countries.
No exchange wants regulators to step in and disrupt business, but Binance Coin pricing has remained quiet in the face of the situation. In fact, since the UK news, BNB has been flat, continuing to form an ascending triangular pattern.
Since the June 22 low of $224.74, the BNB ascending triangle pattern has formed, with the 200-day SMA providing upward guidance. The pattern is approaching its pinnacle, indicating that either a Binance Coin price breakthrough is imminent or the pattern will be empty.
More specifically, after the price has passed 80% of the distance between the base and apex of an ascending triangle pattern, the chances of a successful breakout drop, as does the magnitude of any price move. As a result, the price of Binance Coin has reached an inflection point in the pattern progression.
The measured move of the BNB ascending triangle pattern is 29 percent, with a target of $411.15. The rise would push Binance Coin’s price against the daily Ichimoku Cloud, which is currently at $363.40. The goal, at $434.05., is below the high of the right shoulder of a possible head-and-shoulders pattern.
Chart of the BNB/USD pair on a daily basis
Because upward breakouts from ascending triangles occur about 77 percent of the time, there is a 20% chance that Binance Coin will release to the downside. A daily closing below the strategically significant 200-day SMA at $274.39 would be required for a negative resolution. If the selling continues, BNB might test the $224.74 low set on June 22.
A drop to the measured move of 29% would target $199.90, eclipsing the low of $210.95 set on May 23. It would also cross the neckline of the bigger BNB head-and-shoulders pattern, exposing Binance Coin to huge losses./n
