Binance continues to trend higher as the rising trend line on the daily time frame remains intact. However, price might need a correction in order to draw more buying pressure to sustain the climb.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 50% level lines up with this rising support level around 0.00205. A larger pullback could last until the 61.8% Fib at 0.00190. For now, Binance is testing support at the 38.2% Fib or 0.00220.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that the rally is more likely to resume than to reverse. In addition, the 100 SMA lines up with the trend line to add to its strength as a floor.
RSI is pointing down to signal that sellers still have the upper hand, likely keeping the correction in play for a bit longer. Stochastic is also moving south so Binance might follow suit, although the oscillator is also nearing oversold conditions. Turning back up could bring buyers back in and allow the climb to resume back to the swing high and beyond.
Bitcoin has been off to a strong start so far this month and quarter, so it’s no surprise that BNB/BTC has been sliding over the past couple of days. Many attribute the bitcoin gains to optimism at the start of a new quarter or profit-taking from earlier declines while others think that this is merely a dead cat bounce.
Either way, much of bitcoin’s moves could hinge on market sentiment moving forward, as the cryptocurrency appears to be taking the share of risk-on flows while investors hesitate to buy stocks and commodities. After all, trade war tensions are still high and these traditional assets could be more vulnerable to losses if the situation escalates.