BNB — Why $1,000 Is A Realistic Target!
Binance Coin has been one of the strongest performers in recent months. It reached a new ATH and is only moderately down compared to many other altcoins.
More importantly, the long-term chart looks appealing.
BNB has formed a symmetric triangle on the daily chart.
The lower (long-term) trend line serves as strong support, while the upper trend line of the triangle builds the resistance.
Here's an essential aspect to know about triangle patterns: Symmetric triangles are so-called continuation patterns.
That means triangles in an uptrend usually lead to a bullish breakout and continuation of the uptrend. In terms of Binance, we are in a clear uptrend.
So, let's tackle the question of why $1,000 is a realistic target.
Again, we have to look at the theory behind the triangle pattern.
To calculate the breakout target, you need two steps:
1 - you take the highest high of the triangle and subtract the lowest low.
2 - you add the result to the price at the time of the breakout.
Voila, you have your target.
Let's do the math in terms of Binance:
630 (Highest High) - 230 (Lowest Low) = 400
If we now assume a breakout by the end of September, BNB's breakout point would be slightly below 600.
600 + 400 = yep, 1,000.
