Binance has previously broken out of a descending triangle on a long-term time frame and has sustained the bullish momentum. Another consolidation pattern is forming and there are more signs of hesitation among buyers this time.
On the daily time frame, it can be seen that Binance previously broke past its bullish flag pattern around 0.0006 and is now forming another one around 0.0012. The short-term EMA is still above the longer-term one on this chart and the gaps are widening to reflect stronger bullish momentum.
Volume has also ticked higher in the past week but is retreating lately. Stochastic is pointing down to show that bears have the upper hand while buyers take it easy.
On the 4-hour time frame, it can be seen that Binance is testing the bottom part of its pennant, which lines up with the dynamic support at the moving averages. A bounce could lead to another test of resistance at 0.0013 or even a break higher this time.
Stochastic is heading lower to indicate the presence of sellers but is also dipping into oversold territory to reflect exhaustion. Turning back up could draw more buyers to the mix.
Lastly, on the 1-hour chart, a complex double top can be spotted, which might be indicative of losses. A break below the neckline around 0.0011 could confirm the potential drop or a larger correction.
However, stochastic is already pulling up on this time frame to signal that buyers would defend the support area and probably attempt to go for more gains. Note that the mast of the flag spans 0.0006 to 0.0014, so the resulting climb could be of the same height.
Bitcoin is currently paling in comparison to its rival altcoins like Binance as the former seemed unable to sustain its climb from late last year. It doesn’t help that a couple of ETF applications were withdrawn on account of SEC pushback, leading many to doubt that investor interest could be sustained.