Binance is back in consolidation mode after a previous upside break, as traders might be holding out for the next developments. BNB has formed lower highs and higher lows against BTC to create a symmetrical triangle on its 1-hour chart.
Price is approaching the peak of the formation, which means that a breakout is bound to happen soon. The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside, which suggests that a break lower might be more likely.
The chart formation spans 0.0016 to 0.0019 so the resulting drop could be of the same height. Similarly, a break past the resistance could also lead to a rally of the same height.
RSI is on middle ground to signal further consolidation but also seems to be pointing down. Stochastic looks ready to move south so price could follow suit.
There hasn’t been much in the way of Binance developments, although bitcoin is getting back on its feet thanks to geopolitical risks, particularly rising anti-EU sentiment. Italy could be headed for another round of polls, and many fear that this could be proxy for a vote to leave the bloc.
More movement is expected in June as the coin burn could take place soon. In the meantime, Binance continues to add support for more altcoins, which explains why bulls refuse to let up.
According to Christopher Burton of Hacked.com, “With the recent market shakeout, the modest rally we saw since Monday is a welcome respite from the seeming constant bearish pressure.”
Price has yet to show more bullish momentum, at least on the short-term time frames, to confirm that the drop is over and that further gains are likely. For now, risk sentiment has been influencing altcoins but bitcoin has been able to enjoy most of the gains.