Binance is still trending higher as it bounced off the new ascending channel bottom and made its way past the middle. Price is pulling back to the mid-channel area of interest, though, possibly to gather more bullish energy on the climb.
If buyers join in, price could make its way up to the top of the channel around 0.00195. The 100 SMA is above the longer-term 200 SMA after all, so the path of least resistance is still to the upside. Also, the moving averages are in near the channel bottom to add to its strength as a floor.
However, the gap between the moving averages has narrowed significantly recently to signal weaker buying momentum. If a downward crossover is completed, sellers could join in and push for a break below support.
RSI Is also pointing down after recently reaching overbought levels, indicating a pickup in selling pressure. Stochastic is also heading south to show that sellers are in control of the game and could keep pushing for losses.
Most altcoins are having a rough time these days as a number of updates forced the recent wins to be returned. For one, South Korean authorities are reportedly considering ending tax breaks on cryptocurrency exchanges, something that might affect Binance.
Paul Krugman also lambasted cryptocurrencies in a recent article, writing:
“Cryptocurrency enthusiasts are effectively celebrating the use of cutting-edge technology to set the monetary system back 300 years. Why would you want to do that? What problem does it solve? I have yet to see a clear answer to that question.”
And lastly the news of the outage on HitBTC also hit sentiment hard as investors worried of another security breach. The exchange clarified that it was just due to some hardware issues and that clients shouldn’t be worried. But the fact that the outage lasted for a number of hours already sparked FUD among most traders.