Binance continues to tread sideways but is starting to show signs of selling off. This could mean that the longer-term downtrend is set to resume, possibly taking price to the lows at 0.0002000.
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. The 200 SMA recently held as dynamic resistance and price has yet to break below the short-term moving average to confirm that more losses are in the cards. Volume has been relatively subdued as traders are waiting for more catalysts.
Stochastic is also on the move down to confirm that bears are in control of Binance movement. Reports that China has issued a ban on ICO financing has weighed on cryptocurrencies since most exchanges and startups are funded through these. This also revives fears of stricter regulation from authorities in one of the world’s largest bitcoin markets.
According to the statement issued by several government offices including the Chinese central bank, “ICO financing refers to the activity of an entity raising virtual currencies, such as bitcoin or ethereum, through illegally selling and distributing tokens. In essence, it is a kind of non-approved illegal open fund raising behavior, suspected of illegal sale tokens, illegal securities issuance and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities.”
The statement also imposed that “as of the date of this announcement, all types of currency issuance financing activities shall cease immediately” and that “trading platforms shall not conduct any exchange business between fiat money and tokens, shall not provide information and price for token trading.”
Still, it’s also worth noting that bitcoin is able to outpace its peers in these cases, especially since geopolitical risks are in play and there are a few factors keeping bitcoin afloat against Binance. Keep in mind that tensions with North Korea could draw more investors towards cryptocurrencies as these are perceived as safe-havens or digital gold when stocks and commodities aren’t faring so well.
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.