While altcoins continue dropping Bitcoin has increased its dominance over the market, reaching 68 percent for the first time since early 2017. Some prominent members of the industry even predict that BTC will capture 80 percent of the market. This technical analysis will evaluate whether Binance Coin, EOS and Stellar have the potential to rebound despite the larger market trend.
Binance Coin managed to trade above the 7-week moving average for over 6 months invalidating all the bearish signals along the way. Nonetheless, the latest sell signal given by the TD Sequential Indicator in the form of a green nine in mid-June could not be invalidated. Since then, BNB has corrected nearly 39 percent, breaking below the 7-week moving average for the first time since late December.
So far, the selling pressure behind this cryptocurrency has not been strong enough to take it down to the 30 or 50-week moving average. Additionally, last week a hammer candlestick pattern developed. This is a reversal candlestick formation that signals potential capitulation by sellers and a turnaround in the price direction.
A move above the 7-week moving average, based on the 1-week chart, could validate the outlook given by the hammer candlestick pattern and a break above the previous high of $39.60 will confirm that Binance Coin is poised to continue its bull rally and make higher highs.
BNB/USDT by TradingView
If BNB is indeed on its way to new yearly highs, the Fibonacci retracement indicator could help identify the different price points that could act as barriers due to the high levels of supply around them. Thus, breaking above the 23.60 percent Fibonacci retracement area that sits around $31.20 could pave the way for Binance Coin to try to test the next levels of resistance around $33.85 and $39.60.