Binance (BNB/BTC) Technical Analysis for 01/05/18 – Still Waiting for More Bulls

Binance is still treading sideways on its short-term time frames as volatility has taken a hit after its previous upside break. On the 1-hour chart, it can be seen that resistance at 0.00064 is holding and that price could dip back to the nearby areas of interest.

Stochastic is on the move down to show that sellers have the upper hand, but the oscillator is also dipping into oversold territory to reflect exhaustion. Turning higher could draw buyers back to the game and lead to a boost in Binance against bitcoin.

Volumes remain elevated for the past couple of days, so there could still be a chance for a brewing breakout in either direction.

On the 4-hour time frame, the consolidation appears to be attempting to break out in either direction since the start of the year but both bulls and bears have been defending inflection points well.

The short-term moving average is above the longer-term one, so the path of least resistance is to the upside. However, stochastic has room to fall on this time frame, so bearish pressure is present.

Lastly, the daily chart shows a bullish flag after the recent upside triangle break. The mast of the flag spans 0.0002 to 0.0007 so the resulting rally could be of the same height. Note that this chart formation is often seen as a continuation signal.

On this time frame, stochastic is dipping into oversold territory and crossing higher could be the sign that bulls are waiting for to charge. In that case, Binance could climb by around 0.0005 against bitcoin.

Bitcoin is under pressure these days due to its high costs and the move to curb activity in some nations like South Korea. This has taken its toll on volumes and has led traders to look at cheaper alternatives like Binance and Ripple. If this continues, Binance could take advantage and draw more interest from investors.

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