Binance continues to trend lower and has broken below the mid-channel area of interest on its 4-hour chart. Price could be headed back to support at 0.00075 from here.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This suggests that the selloff is more likely to carry on than to reverse. The latest consolidation appears to be a bearish flag pattern, so a break below the short-term support could lead to a drop of the same height as the mast.
However, stochastic is pulling up from oversold levels to signal that buying pressure is present. RSI is pulling up from oversold territory as well, so Binance could follow suit. This could spur a correction to the channel resistance and moving averages at 0.0010-0.0011.
Applying the Fibonacci retracement tool on the 1-hour time frame shows that the 61.8% level lines up with the channel resistance. The 38.2% level lines up with the 100 SMA dynamic resistance, which could be enough to keep gains in check for a shallow pullback.
RSI has some room to climb on this chart so price could still enjoy a bit of bullish momentum. Stochastic, however, is already indicating overbought conditions and looks ready to turn lower to signal a return in selling pressure.
Bitcoin is on a slow but steady climb against the dollar, which probably explains why it’s advancing against most of its altcoin rivals as well. This improved sentiment was spurred by the US Senate hearing earlier in the month, followed by positive remarks from South Korean officials that signaled willingness to let industry developments thrive.
However, there are still some issues weighing on bitcoin and the pickup in risk aversion so far this week has also weighed on this particular cryptocurrency.
