Binance has retreated from its previous rally off the support at 0.0002 and is retreating back to the area of interest. Volume has been subdued since mid-August as China moved to shut down bitcoin exchanges in the country and ban ICO funding.
Binance is an up and coming Chinese 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.
In contrast, bitcoin has been on a tear as geopolitical risks are returning and the network faces another hard fork in mid-November. If all goes well, price could react the same way it did back in August and go for more gains. After all, this would leave the cryptocurrency with a network that could be more stable and handle more transactions than before.
Stochastic is indicating oversold conditions on the daily time frame and could be poised to pull up, indicating a pickup in bullish pressure. The EMA on this time frame has held as dynamic support in the past and could continue to do so.
Meanwhile, a short-term symmetrical triangle pattern can be seen on the 1-hour time frame so it would be best to wait for a directional break from this consolidation to gauge how long-term price action could fare for Binance.
On this time frame, stochastic is turning lower to suggest that bears could take the upper hand so a candle closing below 0.00029 could be enough to confirm a break lower all the way to the lows at 0.00025.
On the other hand, a candle closing past the 0.00030 level could signal that buyers are ready to push for a reversal from the recent selloff. It would take a strong catalyst for bitcoin to sell off against Binance, though, as traders appear to be moving funds away from stocks during the earnings season and onto alternative higher-yielders.
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