Binance could be due for an uptrend against bitcoin as price formed a double bottom pattern on the 4-hour chart. Price has yet to break past the neckline around 0.00105 before confirming the climb, though.

A bullish flag continuation pattern is also forming, signaling that price is likely to make another leg higher. This might be enough to take it past the neckline and onto a rally that’s the same height as the chart formation.

However, the 100 SMA is below the longer-term 200 SMA, which suggests that the path of least resistance is still to the downside. In other words, the selloff is more likely to resume than reverse.

Note that Binance is also in a descending channel against bitcoin, and that the moving averages line up with the channel resistance. These strong upside barriers could continue to keep gains in check and allow the selloff to resume, taking Binance back down to the lows at 0.0009.

Stochastic is pointing up after heading lower, indicating that buyers are getting back in. However, the oscillator is approaching overbought levels again, so buyers could be quickly exhausted. RSI also looks ready to turn down from overbought levels to signal a pickup in selling pressure as well.

Bitcoin has recently enjoyed some gains from news of Circle’s acquisition of Poloniex but this sentiment is fading as the attention is turning to the SEC investigation into ICOs. According to the Wall Street Journal, the regulator has issued dozens of subpoenas and information requests to technology companies and advisers, shared by people familiar with the matter.

Recall that SEC Chairman Clayton previously warned:

“A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.”

In January, SEC officials also admitted that there remains a “substantial risk” that it would be unable to recover investments for those who lost money.





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