Binance recently broke out of its descending triangle on the daily time frame after the fake out to the downside. This signals that price could be in for more gains from here. Note that the chart pattern spans 0.0002 to 0.0007, so the resulting climb could be of the same height.
Volume has been elevated as cryptocurrencies are under the spotlight after bitcoin futures were launched on the CBOE then CME. Stochastic is already indicating overbought conditions on the daily chart, though, so selling pressure could still return.
If so, a pullback to the broken triangle resistance could be seen before Binance heads any further north. The short-term MA on the daily time frame is above the long-term one, though, so gains are in the cards.
Zooming in to the 4-hour chart shows a potential pullback play to the area of interest at 0.00225. This lined up with a former resistance turned support and is also around the slowest moving average.
Stochastic is in oversold levels on this time frame, indicating that sellers are starting to feel exhausted and could let buyers take over. If so, Binance could break past the recent highs around 0.00036 to indicate a pickup in buying momentum.
Lastly, looking at the 1-hour chart shows a short-term uptrend that might be enough to keep losses in check. Volume is seen to have dipped over the past few days, though, and stochastic looks ready for another move south.
Bitcoin is stalling from its rally as traders have been booking profits close to the $20,000 handle. The main events such as the launch of bitcoin futures on CBOE and CME have already passed and this cryptocurrency might not have much to prop it any higher until the end of the year.
Still, it’s worth noting that investor interest is supported and that funds continue to provide more ways for retail investors to trade bitcoin.
