Binance could be in for a rally as price is forming a short-term reversal pattern. Price failed in its last two attempts to break below support at the 0.00140 mark and is on its way to test the neckline at 0.00165.
A move past this resistance could lead to an uptrend of the same height as the chart pattern. However, the 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff could still resume from here.
Then again, the gap between the moving averages has narrowed enough to signal a potential upward crossover. Price is also moving above the moving averages as an early signal that bulls are getting the upper hand.
RSI is heading south from overbought levels, though, so sellers could stay in the game. Stochastic is also dipping into overbought territory to reflect exhaustion among buyers. Turning lower could also accelerate bearish momentum.
Bitcoin recently took hits from negative remarks by Bill Gates and Warren Buffet on its value and ability to hold on to gains. Although it has recovered somewhat to the dollar, it seems to be having more difficulties against Binance.
Note, however, that Binance has dropped out of the top 20 altcoins recently. Then again, this could mean that traders are jumping on opportunities to buy again at much cheaper levels. For now, though, it’s hard to imagine what kind of catalyst could allow it to sustain a move past the double bottom neckline.