BNB Price Update: Inspecting a Rare Flat Corrective Pattern
A long-term corrective flat pattern was printed on the Binance Coin's ( BNB) weekly chart following the sell-off from May 2021 all-time high. This analysis will discuss this rare corrective pattern and why $200 is the most significant BNB support level.
BNB Regular Flat
Based on the Elliott Wave theory, a flat pattern is a 3-wave corrective pattern with a 3-3-5 internal wave structure. Down from the all-time high of $704, wave A ended at a $211 swing low, and the corrective wave B ended at a $696 swing high.
Third wave C has been unfolding down from the $696 swing high and is always a 5-wave structure. We can note an exciting price development; while wave C already extended beyond the wave A low, the internal subdivision only shows 4 waves.
Usually, the last wave in a 5-wave sequence breaks beyond wave 3, but sometimes the fifth wave fails to move beyond wave 3 – an anomaly known as a truncated fifth wave. This makes the whole BNB corrective pattern extremely rare.
BNB Support Level
The $200 level plays a major role in the whole flat pattern because, on a weekly closing basis, both wave A and wave C couldn't break below. While wave C extended towards the $183 low, the bulls showed up and defended the $200 support level.
In the short term, as the price approaches the apex ($200 support level), the 20-months corrective pattern may be near its completion phase.
