Binance (BNB/BTC) Technical Analysis for 12/05/2017 – Finally, Some Action!

Binance is finally enjoying a bit more momentum after weeks of consolidation, with bulls defending the support levels. Price has spiked higher on the 1-hour time frame, faded the move, then drew more buyers to join in.

The short-term moving average is also above the longer-term ones on this time frame, signaling that further gains are in the cards. Volume also remains supported, albeit lower than the spike back on December 4. Stochastic is on the move down to suggest that profit-taking is underway before the oscillator hits oversold levels and turns back up.

On the daily time frame, it can be seen that this move higher is still within the confines of the long-term descending triangle pattern. However, a few more gains could classify as an upside break and signal further bullish momentum.

Stochastic is already indicating overbought conditions, though, so price could retreat before attempting to break any higher. Volume is still relatively subdued on this chart compared to the levels seen back in August.

Lastly, on the 4-hour time frame, Binance is forming a bit of a range and testing the resistance. This is located around 0.00023 and a break higher could complete the formation of a complex double bottom.

This chart pattern spans 0.00018 to 0.00023 so the resulting rally could be of the same height. Stochastic is already indicating oversold conditions on this time frame so buyers could take advantage of seller exhaustion to push price higher.

Note, however, that bitcoin remains strongly supported and has surged to yet another batch of record highs. Price is being propped up by anticipation over the CBOE bitcoin futures launch, which will soon be followed by the CME and Nasdaq. This could draw more investors towards bitcoin once more, leaving competitors like Binance weaker in the process.

Of course any setbacks to this launch or investor reception could still leave bitcoin lagging behind its peers, with traders continuing to pursue other digital asset alternatives.

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