A widely followed crypto trader is warning that Binance Coin (BNB) is on the verge of collapsing against Bitcoin (BTC).
Bluntz tells his 224,500 followers on the social media platform X that the BNB/BTC trading pair has formed a bearish swing failure pattern (SFP).
A swing failure pattern in an uptrend typically occurs when price makes a series of higher highs and higher lows, but at some point fails to make new highs and sell-side pressure begins to mount, hinting at a bearish reversal.
Says Bluntz,
“BNB is still top of the priority list for shorts. [There was a] savage SFP on BNB/BTC yesterday and the USD pair simply looks like an A-B-C [correction] up still.
Also, [BNB] has the most horrendous high timeframe chart in my opinion.” online news dailyhodl.com.
https://dailyhodl.com/Bluntz/x
An ABC correction, part of Elliot Wave theory, is a simple three wave move in the opposite direction of the trend. In this case, Bluntz thinks BNB’s strength in late August was a correction upward in its longer term downtrend.
Looking at the trader’s chart, he suggests that BNB could decline below the key $200 level around September 2nd, retest the $210 level near September 4th and then decline to about $196 by September 6th.
The trader’s bearish BNB prediction dates back more than eight months ago.
He previously said,
“I think the five-year uptrend in BNB/BTC has come to an end. IMO it comes down at minimum another 40%-50% from here. [I] genuinely don’t even know where that would put the BNB/USD price but I’ll be avoiding this coin like the plague from here. GL (good luck) if you hold it.”