Binance continues to cave to bitcoin strength and has fallen to the very bottom of its descending channel. Support looks ready to break as technical indicators show that sellers still have enough energy.

The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to continue than to reverse. The gap between the moving averages is also widening to reflect stronger selling pressure while the 200 SMA lines up with the channel resistance to add to its strength as resistance.

Stochastic is turning lower without hitting overbought conditions to show that sellers are eager to hop back in. RSI, on the other hand, has some room to climb so a correction to the mid-channel area of interest at 0.00155 or the top of the channel at 0.00165 could still be possible.

Bitcoin has gained ground on news that Coinbase has acquired, formerly 21 Inc. This could renew investor confidence in the space as more developments and acquisitions are made, signaling room for more growth. Keep in mind that big hedge fund families have been reportedly ready to place bets on the industry, which could mean more liquidity and activity down the line.

Besides, the tax filing deadline is about to pass, which would allow investors to reopen their previously closed positions when they calculated their dues. The second quarter of the year has been mostly positive for cryptocurrencies, but regulatory troubles with Binance could keep this particular altcoin lagging behind.

Binance also reported its quarterly BNB burn to distribute earnings and also hopefully increase the value of its coin as it had done so before. This time around, though, the announcement hasn’t quite generated the intended effect as the run-up was seen prior. Keep in mind, however, that Binance expects a migration to its proprietary blockchain soon.

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