BAT bounces off long-term support, will the price continue to rise?

On June 22nd, Basic Attention Token (BAT) completed a double bottom pattern near the $ 0.41 support area.

It has risen since then and broke the descending resistance line on June 30th.

Double floor

The BAT has been down since April 9 when it hit an all-time high of $ 1.69. It then hit a lower high on May 7th and continued its downward movement at a faster rate.

On June 22, the token hit a low of $ 0.42. In combination with the May 23 low, a double bottom was created. The pattern is created within the $ 0.41 horizontal support area, which is the same as the 0.786 Fib retracement support.

The double bottom is considered a bullish reversal pattern. In addition, it is linked to bullish divergences in the MACD, RSI, and Stochastic oscillators.

When an upward move occurs, the next resistance area is between $ 0.89 and $ 1.03.

BAT / USDT daily chart | Source: TradingView

The shorter-term six-hour chart shows that BAT has broken a descending resistance line. This movement supports the possibility that it will continue to rise towards the resistance range described above.

BAT / USDT 6-hour chart | Source: TradingView

Count waves

Trader @ Mesawine1 sketched the BAT chart and said retesting $ 0.60 would be a good way to get started.

As seen above, BAT broke out above a descending resistance line.

Furthermore, the downtrend looks like a completed bearish impulse. However, because of the overlap, it should be a diagonal wave.

This suggests that the most likely move would be a rally towards the $ 0.89 to $ 1.03 resistance area described above. However, the direction of the long-term trend has yet to be confirmed.

BAT / USDT daily chart | Source: TradingView

BAT / BTC

The BAT / BTC chart shows a clearer bullish bias.

After a double bottom in the Satoshi support area at 1440 (0.618 Fib retracement level), BAT broke above the descending resistance line.

In addition, the technical indicators are rising. The stochastic oscillator has created a bullish cross and the MACD histogram is in positive territory.

The next resistance is between 2145-2313 satoshis, 0.5-0.618 fib retracement resistance levels.

BAT / BTC daily chart | Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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