Trade Recommendation: Basic Attention Token
Basic Attention Token (BAT/BTC) printed a new yearly low on September 12, 2018 when it dropped to as low as 0.00002056. While this number may appear random, a closer look at BAT/BTC reveals that 0.00002056 is actually a key support level. This used to be the market’s resistance back in December 2017. The breach of this resistance triggered a parabolic run to 0.0000667 on January 9, 2018.
Now after the market touched 0.00002056 on September 12, another parabolic run was triggered. This time, Basic Attention Token climbed as high as 0.00005992 on November 8. At that point, the market was ripe for profit-taking. As distribution commenced, the market significantly retraced. The good news is that bulls have reclaimed an important support level.
Technical analysis shows that amidst the strong correction, BAT/BTC managed to recover key monthly support of 0.000039. If you zoom out and look at the monthly chart, Basic Attention Token has bullish tendencies as long as the monthly candle closes above this level. On the other hand, a monthly close below this level tends to send the market back down to 0.0000206.
In addition, the pullback enabled technical indicators to cool down. The daily RSI is out of overbought territory. More importantly, the market respected and retested RSI support of 42. These are encouraging developments as BAT/BTC appears to retain its bullish steam as long as it is above this RSI level.
The strategy is to buy on dips as close to 0.000039 as possible. If the market can defend this support, it will likely gather the momentum to climb to our initial target of 0.00004523. Take that out and 0.00005057 is next.
The process may take a month.
Daily Chart of Basic Attention Token/Bitcoin on Binance
As of this writing, the Basic Attention Token/Bitcoin pair is trading at 0.00004114 on Binance.
Summary of Strategy
Buy: As close to 0.000039 as possible.
Target: 0.00004523 and 0.0000505.
Disclaimer: The writer 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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