Daily Tech Pick
Basic Attention Token (BAT) | $0.242728 USD | 0.00003755 BTC
Since the large climatic sell-off, Bitcoin has remained in a narrow range between $6300 and $6650, whilst volume has remained relatively low. Soon the market will decide whether this is a period of healthy consolidation signalling a potential break to the upside or that bulls simply do not have enough conviction to enter the market at these current levels. On the daily chart, Bitcoin is still sitting below the 10 EMA coinciding with the $6650 near-term resistance level. Thus, a close above the 10 EMA or a break of this level would indicate further upside. It is important to note, however, that the downtrend is still very much intact and so any positive move is still only a bounce until it clears major resistance levels created over the last month. Here, the key resistance level to watch is around $7500. Taking a more macro perspective, The weekly chart is extremely extended from the 10 EMA. If the market is set to turn bullish, ending this week with a large bullish engulfing candle will be a key indicator. Finding opportunities in this market are few and far between, although some names have shown considerable strength despite Bitcoins indecisiveness. One such coin has been Basic Attention Token (BAT). Last week on the daily chart, BAT hit extreme oversold conditions on the RSI but bounced nicely followed by a bullish engulfing with strong volume the following day. Since then, BAT has climbed steadily by 26% and is now forming a potential inverse head and shoulders pattern on the 4-hour chart. The neckline of this pattern is around the 0.00004 Satoshi level and so a conditional buy order around this level would be sensible for those who believe in the project long-term. Alternatively, in order to remain cautious in this turbulent market, a positive crossover of the 10 EMA and 30 EMA on the daily would be a safer entry. Ultimately, if this is the start of a positive uptrend for BAT then a double bottom will form on the daily with upside potential of 61% relative to Bitcoin. If so, the key resistance levels to watch are 0.00005, 0.000055 and 0.00006 Satoshis respectively. As always, these markets are not easy to trade so use tight stop losses to preserve capital. Although, with a niche specialism in the advertising market that certainly needs an overhaul, Basic Attention Token should certainly be on your watchlist.
BAT/BTC Daily Chart
Source: Tradingview
