Binance Coin (BNB) Price Prediction: Will BNB Correct Before Continuing Its Upward Trajectory in Q4 2023?

Binance Coin (BNB), the fourth-largest crypto currency by market capitalization, is currently experiencing a significant market movement

Binance Coin (BNB) is currently the fourth-largest cryptocurrency by market capitalization. It has recently seen a significant market move, largely driven by the recent release of former Binance CEO Changpeng Zhao (CZ) after a four-month detention related to U.S. money laundering allegations.

This development sparked a surge in BNB’s price, but it was accompanied by a spike in liquidations, resulting in an immediate local reversal across many BNB trading pairs. The pressing question now is whether BNB will correct before continuing its upward trajectory in the typically bullish fourth quarter.

Recent Price TrendsExamining the price trends, BNB has been in a consistent uptrend over the past three weeks, showcasing a series of higher highs and higher lows. A closer inspection of the BNB/USDT trading pair on the 4-hour chart reveals this trend clearly.

However, the recent price action shows BNB hitting the $620 mark, which raises the potential for a pause in this upward trend. The formation of a double top at the $620 level signals a possible retracement ahead, particularly if the price falls below the neckline of this formation.

If such a break occurs, analysts suggest that BNB could potentially correct to the $560 level or even as low as $540, which corresponds with the equilibrium of the recent price movements.

Crucial Technical LevelsThe $560 price point is particularly significant as it aligns with the 0.382 Fibonacci Retracement level, which often acts as a robust support level during healthy market trends.

Should BNB retrace to this level, it may offer an attractive buying opportunity, especially with a broader bullish outlook for the crypto market in Q4.

Market Indicators and SentimentIn addition to the observed price action, several market indicators further support the notion of an impending correction. Metrics such as net longs and shorts delta, open interest, and the whale vs. retail delta paint a revealing picture:

Potential for Future GainsDespite the indications of a correction, the overall bullish sentiment for the cryptocurrency market in Q4 suggests that a drop to $560 might not be the end of BNB’s upward potential.

If traders can capitalize on this retracement, BNB may have the opportunity to rally towards $800, potentially yielding a return of around 40% from the entry point.

ConclusionBinance Coin is navigating a challenging market landscape following recent events. While signs point toward a potential correction, particularly to the $560 level, this could also present a prime buying opportunity for investors.

With strong fundamentals and market sentiment favoring a bullish Q4, BNB may soon find itself back on an upward path, offering potential returns for those willing to enter at lower levels.