Basic Attention Token ($BAT) Breaks Out Ending 50-Day Consolidation

Basic Attention Token ($BAT) has been declining after hitting an ATH of $1.92 on November 28. So far, the downtrend has resulted in a low of $0.57 on February 24. However, the price reversed the trend the next day, forming a long lower wick (green icon). Since then, it has been steadily rising.

It broke out from a descending resistance line on March 14, bringing an end to the consolidation above the $0.67 support area that had been going on since January 22. If the current rising trend continues, the next nearest resistance level is at $0.96.

A critical analysis of the movement reveals that BTC broke out after forming a triple bottom. The triple bottom is a bullish pattern that frequently leads to a bullish trend reversal, as was the case here.

Furthermore, the pattern was supported by a strong bullish divergence (green lines) in both the RSI and the MACD. Divergences of this type are also related to bullish trend reversals. As a result, the daily time frame indicates that BAT will most likely reach the $0.96 resistance level.

Cryptocurrency trader @TheTradingHubb tweeted a chart of BAT and suggested that the correction may be complete.

The entire BAT movement from March 9 could be part of an A-B-C correction framework. Waves A:C has a nearly identical 1:1 ratio in it. Wave C, as seen by its wedge shape, most likely developed into an ending diagonal. Diagonals are typically retraced quickly, therefore a rapid upward movement would be predicted if this is the right count.

To be called a bullish reversal, BAT must remain above its March 1 highs (red line) and break out of the current ascending parallel channel. A decline below the line indicates that the increase is corrective rather than progressive and will not result in new highs.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

KAZ

CoinCu News