Binance (BNB/BTC) Technical Analysis for 10/18/2017 – Descending Triangle Forming?

Binance continues to edge lower and appears to be in the middle of forming a descending triangle on its long-term chart. Price has yet to test support around the 0.0002 level and might be due for a bounce.

Volume has been turning lower for the past couple of months following the ban in ICO funding in China and the shutdown of bitcoin exchanges in the country. Stochastic is indicating oversold conditions on this daily time frame, which means that sellers are starting to get exhausted and might let buyers take over.

On the 1-hour time frame, price is in tight consolidation just above 0.00024 so its breakout could be an early indication of how long-term action could fare. The short-term moving average is below the longer-term moving average, which means that the path of least resistance is to the downside.

Stochastic is turning lower to indicate that selling pressure is in play, but the oscillator is also nearing oversold conditions to signal exhaustion among bears.

Binance is an up and coming  exchange but it has its own cryptocurrency. These tokens were created by an Ethereum smart contract some time ago and a total of 80m BNB coins is kept in reserve, all of which belong to the team. A total of 200m coins were created initially so there are 120m BNB coins waiting to be traded.

On the 15-minute time frame, there are signals that a bounce off the near-term support is due as stochastic is already pulling up from oversold levels. This could take Binance back up to the resistance at 0.00025 or higher. A bullish divergence can also be seen as stochastic made lower lows.

Bitcoin has been treading slightly lower against its peers this week as bulls are booking profits off the recent rally to reduce their exposure to the network upgrade next month. Still, there are expectations that this hard fork could lead to results similar to the August upgrade, which could mean losses for its rivals like Binance.

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