HomeTradingBinance (BNB/BTC) Technical Analysis for 11/07/2017 – Bulls Ready to Take Over?

Binance (BNB/BTC) Technical Analysis for 11/07/2017 – Bulls Ready to Take Over?


Binance is starting to trend higher on its short-term time frames as it bounced off a major support level recently. Consolidation is still visible on the longer-term time frames, but it looks like buyers are putting up a strong fight.

On the 1-hour time frame, Binance has formed higher lows to signal stronger buying pressure. Price is finding resistance around 0.00023, however, and stochastic is turning lower to reflect the presence of sellers that could keep gains in check.

On the 4-hour time frame, Binance appears to be moving sideways between support around 0.00018 and resistance at 0.00023. Price is currently testing the resistance and if it holds as ceiling, price could fall back to support. The short-term moving average is above the longer-term one on this time frame but stochastic is turning down from the overbought zone to signal rally exhaustion and a return in bearish pressure.

Lastly, on the daily time frame, Binance is still stuck inside its descending triangle pattern and is bouncing off support. Sustained bullish pressure could take it back up for a test of the triangle resistance, probably around the 0.00030 level.

Stronger bullish momentum could lead to an upside break but volume has been considerably lower in the past weeks as traders pared positions in reaction to China’s ICO ban. Investors are also likely paring their holdings in anticipation of risks related to the bitcoin hard fork next week.

Weak network acceptance could mean weakness for bitcoin, which Binance could take advantage. On the other hand, results similar to the August upgrade that left bitcoin with the capacity to handle more transactions faster could lead to a fall in Binance. Note that the triangle spans 0.00020 to 0.00070, so the resulting breakout could last by the same height.

Stochastic is heading north on the daily time frame so buyers are in control, but the oscillator is also nearing overbought levels. Once it turns lower and reflects a pickup in selling momentum, Binance could see some losses.


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