Binance continues to trend lower as it breached yet another potential support level on its way down. Price is once again testing another floor but it looks like it could take some time before bulls hop back in.
On the daily time frame, the short-term moving average already crossed below the longer-term moving average to confirm a pickup in selling pressure. Price is still hovering around 0.00100 to wait for some buyers, but volume remains weak.
Stochastic has been indicating oversold conditions for quite some time though, which is also indicative of a slowdown in bearish momentum. If buyers are able to take over, a bounce could take Binance back to the 0.00125 level or all the way up to the 0.00180 highs.
For now, bitcoin still has the upper hand, although the general mood in the cryptocurrency world is a somber one. Reports are showing that banks like Citigroup, JP Morgan, and Bank of America are banning buying bitcoin through the use of credit cards.
This adds to the weight of the ongoing crackdowns of several regulatory agencies on bitcoin, a continuation of what’s been going on in China and South Korea. Still, stochastic is also indicating oversold conditions on the 4-hour time frame to suggest a potential bounce.
While the downtrend seems pretty clear on the 4-hour and daily charts, the 1-hour time frame could show a bit of a range. Price is halfway through on its move down to the floor at 0.00098 but stochastic is still pointing down to confirm that sellers have the upper hand.
The short-term moving average is also below the long-term one on this chart while volume has been subdued. A spike higher in activity could lead to a bigger move similar to that seen in a couple of days back.
For now, traders continue to keep close tabs on headlines that could affect Binance and the cryptocurrency world in general, and it doesn’t help that it has been weeks without a positive update.