Binance Coin, one of the high flyers of the February 2021 surge in cryptocurrencies, is also experiencing a steep correction, as billions in market capitalization are wiped out from the ensuing correction. However, it has managed to claw back on some of the steep losses for the day, as seen on the 4-hour chart for the BNBUSD pair. The intraday recovery appears to have peaked at the 50% Fibonacci retracement point at 230.29.
Binance Coin saw a steep rise following the surge in Ethereum gas fees. The Binance chain thus became a cheaper alternative for traders and individuals who were seeking an alternative means to transfer Ethereum for use in trading and DeFi projects. However, it would appear that many traders simply jumped onto the bandwagon, expecting the Binance Coin to continue surging, but have met with great disappointment as the token has suffered a steep correction.
The lower highs on the 4-hour chart were an indication that the uptrend had stalled, at least in the short term. This preceded the gradual selloff on the BNBUSD pair, which cascaded into a full-blown correction that broke down the neckline of the double top pattern. This leaves the potential for a measured move that is expected to take the correction down to the $180 price level.
However, this correction does not appear to be straightforward as the price bounced off the 61.8% Fibonacci retracement from the swing low of 11 February to the swing high of 19 February. This bounce has met a brick wall at the 50% Fibonacci retracement.
If the bears resume selling from here, we would see a retest of 203.771. A breakdown of this level could see the price heading towards 180.00, with 166.00 (78.6% Fibo retracement level) lining up as an additional target.
On the flip side, further recovery of BNBUSD could be triggered if bulls take the price above 230.29, with the previous neckline at 256.817 coming into the picture as an additional target.
The resumption of the uptrend depends on price surpassing the all-time high at 347.197. It is also possible that the price could do a lot of interaction with the various Fibonacci levels on the way up or down, as price determines its ultimate direction.
