BNB (BNB) is experiencing a resurgence in bullish momentum after recovering over 13% from a local low near $800. It traded above $910 on Wednesday, setting its sights on a potential move back toward $1,000.
Key takeaways:
BNB’s double bottom, breakout from a falling wedge, and liquidation pressure are aligning to target $1,020–$1,115 in December.
Failing to maintain above $900 could nullify the bullish scenario toward $1,000.
Double bottom predicts BNB over $1,000
BNB’s rebound is bolstered by a forming double-bottom pattern on the four-hour chart, emerging near the $800–$820 demand zone.
After establishing two similar lows (Bottom 1 and Bottom 2), the price has jumped sharply, indicating that selling pressure is diminishing, and dip buyers are entering.
The structure typically indicates a trend reversal if the price breaks above the pattern’s neckline, currently situated around the $900–$920 resistance area.
A confirmed breakout above this zone could spark a short-term rally toward $1,020 in December, where the 0.382 Fibonacci retracement line converges.
Failing to maintain above the neckline would invalidate the setup, increasing the likelihood of BNB dropping to its 20-4H (green) and 50-4H (blue) exponential moving averages (EMAs) near $860.
Short liquidation cluster points to $1,020 BNB
BNB’s liquidation heatmap on CoinGlass indicates approximately $112.28 million in short liquidations close to $1,020, suggesting price momentum may accelerate toward that level in December.
Liquidation heatmaps indicate where leveraged traders may be forced out of their positions. In this instance, many traders seem to be betting against BNB at current levels.
As these short positions begin to suffer losses, they can be automatically closed by exchanges if prices continue to rise due to a revitalized outlook for risk assets.
When shorts are liquidated, traders are forced to buy BNB, creating additional upward pressure on the price. This phenomenon can act as a temporary catalyst, pushing the price toward the $1,020 liquidation cluster.
Falling wedge breakout boosts BNB recovery chances
BNB has emerged from a multi-week falling wedge, a pattern that generally resolves positively after extended sell-offs.
On the four-hour chart, BNB broke above the wedge’s declining upper trendline in late November but briefly retraced to retest it as support, a common and constructive breakout confirmation.
The successful rebound from this retest suggests buyers are regaining control.
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The wedge’s measured upside target points to the $1,100–$1,115 area in December if the breakout remains valid. Trader CryptoBull_360 predicted the BNB price could surge higher toward $1,300 or beyond.
However, a sustained retreat below the previous resistance-turned-support zone would weaken the bullish setup, risk trapping breakout traders, and delay any significant recovery above $1,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
