Technical Analysis and Market Entry: Basic Attention Token (BAT/USDT) – Time for New All-Time-Highs
- Basic Attention Token (BAT) is at present trading within consolidation mode after a strong initial run early in April.
- BAT/USDT price action has formed a bullish pennant pattern structure, which is subject to a breakout should the bulls capitalize.
Basic Attention Token has been within consolidation mode for since 21st April after the bulls ran out of steam. The price was on a strong bullish run from 12th April, kicking into full gear right up to 21st April and producing an all-time-high of $0.5000. During the noted period, BAT/USDT rallied as much as 90% to the observed high point.
Consistent BAT Rally
In terms of the bigger picture, the BAT price has been consistently rallying since March; levels were initially as low as $0.1500. Over the last nine trading weeks, BAT has closed firmly in the green on six occasions. It has managed to gain a whopping 200% during this detailed bullish run, thanks to much excitement that surrounds the token.
Growing BAT Use Cases
The prospect of greater use cases have grown massively for Basic Attention Token following the announcement from Brave Ads. The platform released the latest version of the Brave Browser, which is a desktop application with Brave Ads. The feature allows users to be able to choose the ads that they view and be compensated with BAT in return.
Given the earlier noted consolidation range, BAT/USDT has formed a bullish pennant pattern structure. It has been ranging and narrowing extremely within the confinements of the formation, raising the case for a breakout. Should the set up play out to the textbook, market bulls will capitalize on this in further driving the price north.
In terms of the current vital levels, $0.3900 is acting as the upper descending trend line. An area of supply can also be observed in proximity running from $0.3900-$0.4000. To the downside, $0.3650 is the next major area; it is the lower acting trend line of the pennant, which sits within a critical demand zone of $0.3650-$0.3800. If the bears forced a breach, then the decent April run of gains could come quickly under threat.
Buy opportunities are attractive at current levels; there are several confluences to back the bullish bias picking up. BAT/USDT is trading within the noted secure areas of demand to support the price, with the comfort of the trend line also seen just below. Both appear to be a stable serving safety net in case of some minor downside pressure from the bears.
Taking a long position from anywhere from $0.3650 to $0.3850 appears to be a decent value and good entries for potentially attractive RR. In terms of upside targets, $0.4299 will be the initial area of interest (the high area between 27-28th April). Further north, eyes will be on the $0.4500-$0.4600 range and then $0.4900-$0.5000, the April high area.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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