Binance is consolidating inside a falling wedge pattern on its 4-hour time frame and is currently testing support. A bounce could take it back up to the resistance around 0.00092.
However, the 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This means that the selloff is more likely to resume from here. Support could be broken soon or the resistance could keep gains in check, especially since it lines up with the 100 SMA dynamic inflection point.
Stochastic is pointing down to indicate a return in selling pressure. RSI is also heading lower without even reaching overbought levels, which suggests that sellers are eager to hop back in. A break below the wedge support could send it lower by the same height as the wedge formation.
On the longer-term time frame, it can be seen that Binance is still finding support around the Fib levels and 100 SMA. On the daily chart, the 100 SMA is above the longer-term 200 SMA to show that the uptrend has a shot at resuming. Also, the gap between the moving averages is widening to reflect stronger bullish momentum.
Price could find support at the 61.8% Fib or the area of interest or former support closer to 0.0006. This is also near the 200 SMA dynamic inflection point.
Stochastic is pulling up from overbought conditions on this time frame to show a potential return in buying momentum. RSI also looks ready to move higher but could also be indicating further consolidation.
Bitcoin has weakened to the dollar on news that the SEC would require online platforms trading digital assets that are considered securities to register with the agency. In a statement, the regulator said:
“If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”
“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”