A popular cryptocurrency analyst and trader is expressing near-term bearish sentiment for Binance Coin (BNB) and one Ethereum (ETH) competitor.
Starting with Binance Coin, the pseudonymous analyst Smart Contracter tells his 219,100 Twitter followers that the fifth-largest crypto asset by market cap could plummet by about 12% from current levels.
From the charts, it appears that the trader who applies the Elliott Wave Theory in his technical analysis is suggesting that Binance Coin has completed a five-wave bullish pattern and is poised to correct up to around $265, a level which coincides with the 61.8% Fibonacci level from the year-to-date high of $323.
“BNB coming down to minimum $265 in my opinion, is definitely on my radar for shorts on any bounce after daily close.”
Binance Coin is trading for $300 at time of writing.
Next up is Ethereum competitor Avalanche (AVAX). According to Smart Contracter, Avalanche could correct by up to 30% in February after completing a five-wave bullish pattern.
From Smart Contracter’s charts, it appears that Avalanche could fall to just below $14, an area that coincides with the 61.8% Fibonacci level from the year-to-date high of $18.97.
“A lot of “majors” [large cap crypto assets], if we can call them that, have now done clean clear 5-wave rises on daily, not all of them, but enough.
AVAX is one I think we can potentially see 25-30% pullbacks begin over the course of the next month.
Hate to be the bearer of bad news but it is what it is.”
Avalanche is trading for $17.34 at time of writing.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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