Binance Coin is pausing from the recent sharp drop as it tests the area of interest visible on the 4-hour time frame. Price is down to the bottom of the ascending channel, which happens to line up with a Fibonacci retracement level.
The 61.8% Fib at the 6.1815 mark appears to be holding as support for now, and a bounce could take Binance Coin back up to the channel top around 7.5000 or at least the swing high closer to 7.4000.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. Then again, the price is trading below both moving averages as an early indication of the presence of selling pressure.
However, stochastic has already reached the oversold region to indicate that sellers are tired and may be willing to let buyers take over. Turning higher and moving north could confirm that bullish momentum is gaining traction. RSI is also pointing up to signal that buyers are regaining the upper hand.
Binance Coin actually had a positive run earlier on as it overtook IOTA in terms of cryptocurrency rankings by market cap. However, price gave up most of these gains as traders may have been quick to book profits at key resistance points.
Another factor being blamed for the drop among most altcoins was the rise in stablecoin Tether. It has overtaken a handful of coins due to this and is weighing on the price of bitcoin, thereby dragging the rest of its peers down.
Still, Binance CEO Zhou maintains that the altcoin could see stronger demand as geopolitical risks, particularly from Brexit, persist. For now, volume is looking subdued as traders wait for more clues on whether or not the channel support would hold.
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