Binance seems to be losing its bullish momentum since the long-term upside break. Price is still in the middle of its correction to the 0.0012 level but is finding support around the dynamic inflection points or moving averages.
Stochastic is already indicating oversold conditions on the daily time frame and appears ready to head higher, possibly drawing more buyers back in. In that case, a move back up to the 0.0018 highs could be underway.
However, the gap between the moving averages is narrowing to reflect slowing bullish momentum. Volume is also lower as investors are moving funds away from digital currencies these days.
On the 4-hour time frame, Binance appears to be forming a head and shoulders pattern. The neckline is around 0.0011, and a break below this support could mean more losses against bitcoin.
Stochastic is indicating overbought conditions on this time frame, which reflects bullish exhaustion and could mean a return in selling pressure. Volume is significantly weaker, though, and it would take a pickup in activity to sustain a breakdown. If that happens, Binance could fall by the same height as the chart formation.
Lastly, on the hourly time frame, Binance is slowly edging lower and finding resistance at the shorter-term moving averages.
Stochastic is also pointing down in this time frame to suggest that sellers are on top of their game. A drop below the near-term support around 0.00175 could lead to more downside.
Bitcoin looks ready to resume its climb against its rivals as the cryptocurrency has formed reversal candles while testing long-term inflection points such as the daily rising trend line and 100 SMA. The mood in the altcoin industry is still a relatively somber one while traders wait for strong catalyst that could revive the bullish runs.
Earlier this month, Binance added 40,000 new users in just an hour after the company lifted a temporary suspension of new registrations it had put in place due to high demand.
