A Top Altcoin Could Rally Higher with Reclaimed Support Area
An analyst suggests that a top altcoin could experience a significant rally if it manages to overcome a crucial resistance zone and turns it into a support area. The analyst, known as Rekt Capital, explains that if Binance Coin (BNB) successfully establishes the $340 resistance level as a support level, the fourth-largest cryptocurrency by market cap could experience significant gains.
Rekt Capital’s chart indicates that BNB has broken out of a descending triangle pattern on the weekly chart and has firmly positioned itself above the hypotenuse of the pattern. Although a descending triangle pattern is typically bearish, a successful breakout above the hypotenuse signifies the beginning of a bullish trend.
Currently, BNB is trading at $320, showing an increase of nearly 20% over the past week.
Bitcoin Outlook Before Fourth Halving
The analyst also provides insights into Bitcoin’s future. Rekt Capital points out that there are just over 100 days remaining until Bitcoin undergoes its fourth halving in April 2024. The analyst believes that any significant retracements during the pre-halving period would present excellent buying opportunities for Bitcoin.
According to Rekt Capital’s chart, Bitcoin has surpassed the upper trendline of an ascending triangle pattern, which typically indicates bullishness. The chart also shows that Bitcoin experienced a substantial correction before the third halving in 2020 but ultimately rallied and surpassed its previous all-time high that same year.
As of now, Bitcoin is trading at $42,849.
Hot Take: Positive Outlook for BNB and Bitcoin
According to the analyst known as Rekt Capital, Binance Coin (BNB) and Bitcoin both have positive outlooks. BNB could experience significant gains if it manages to turn the $340 resistance level into a support area. On the other hand, Bitcoin has the potential for a bullish trend leading up to its fourth halving in April 2024. Both cryptocurrencies have shown promising chart patterns that indicate potential price increases in the future.
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