Binance (BNB/BTC) Technical Analysis for 01/29/2018 – Is That a Bullish Divergence?

Binance continues to trend lower on its 1-hour time frame as technical indicators suggest further bearish pressure. The short-term moving average is below the longer-term moving averages to indicate that the path of least resistance is to the downside.

Stochastic is also turning lower from the overbought zone to signal a pickup in selling pressure. A bit of bearish divergence can be seen as price made lower highs while the oscillator had higher highs.

On the 4-hour time frame, the consolidation looks tighter as volume remains subdued. Stochastic is still heading higher on this time frame, so price might follow suit. However, the oscillator is also nearing overbought levels to signal rally exhaustion. A break below the 0.00115 mark could be enough to draw more sellers to the mix and start a steeper drop.

Bitcoin is under pressure from news of another exchange shutdown due to hacking. On top of that, a crypto-ranking website mentioned that Ethereum and Ripple are better than bitcoin, which suggests that any funds flowing back to the altcoin industry might favor those instead.

On the daily time frame, Binance is still finding support at the moving average, which might be enough to keep further losses in check. Then again, the gap with the other moving average is narrowing to signal a potential downward crossover.

On this time frame, stochastic has been indicating oversold conditions for quite some time. In fact, a bullish divergence can be seen as the oscillator had lower lows since the start of the year while Binance had higher lows.

Volume is also somewhat subdued but close to same levels as in its breakout from consolidation late last year. This could mean that another breakout is in order but it’s still hard to determine in which direction.

A move past the 0.00125 mark could be enough to confirm that bulls are back in action while a move below 0.00115 could indicate that bears have won over.

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