BNB (BNB) has demonstrated renewed bullish momentum, surging over 13% from a local low near $800. It surpassed the $910 mark on Wednesday, with prospects of a move toward $1,000.
Key takeaways:
BNB’s double bottom, along with a falling wedge breakout and liquidation pressure, suggests a potential target of $1,020–$1,115 in December.
The inability to maintain levels above $900 could jeopardize the bullish outlook toward $1,000.
Double bottom indicates BNB over $1,000
BNB’s recovery is reinforced by a forming double-bottom pattern on the four-hour chart, identified around the $800–$820 demand area.
Two similar lows (Bottom 1 and Bottom 2) have produced a sharp price rebound, indicating diminishing selling pressure and increased buying from dip buyers.
This structure typically marks a trend reversal if the price manages to breach the neckline of the pattern, currently situated around the $900–$920 resistance area.
A confirmed breakout could lead to a short-term upswing towards $1,020 in December, aligning with the 0.382 Fibonacci retracement level.
Failing to stay above the neckline would invalidate this setup, increasing the probability of BNB retreating towards its 20-4H (green) and 50-4H (blue) exponential moving averages (EMAs) around $860.
Short liquidation cluster indicates $1,020 BNB
According to BNB’s liquidation heatmap on CoinGlass, there is about $112.28 million in short liquidations near the $1,020 mark, suggesting pricing momentum could ramp up towards that level in December.
Liquidation heatmaps pinpoint areas where leveraged traders may be forced out of their positions. In this situation, numerous traders seem to be betting against BNB at the current levels.
As those short positions begin to incur losses, exchanges can automatically liquidate them if the price continues to rise, creating a recovery sentiment for risk assets.
When shorts are liquidated, it compels traders to buy BNB, adding pressure to push the price up towards the $1,020 liquidation cluster.
Falling wedge breakout enhances BNB recovery prospects
BNB has emerged from a multi-week falling wedge, a formation that generally leads to bullish outcomes after extended declines.
On the four-hour chart, BNB broke through the wedge’s descending upper trendline in late November but briefly retraced to retest it as support, a typical confirmation of a constructive breakout.
The successful bounce from this retest indicates that buyers are reclaiming control.
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The wedge’s measured upside targets suggest a reach toward the $1,100–$1,115 zone in December, provided the breakout remains intact. Trader CryptoBull_360 forecasted the BNB price to rise even further to $1,300 or more.
However, a sustained decline below the previous resistance-turned-support zone could undermine the bullish scenario, risking the trapping of breakout traders and postponing any considerable recovery above $1,000.
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