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.
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