Trade Recommendation: Basic Attention Token
Basic Attention Token (BAT/BTC) may look bearish at first glance. However, a quick look at the longer time frames shows that the market is bullish.
BAT/BTC registered a 2018 low on September 12, 2018 when it dropped to 0.00002056. At that point, the market printed a double bottom pattern on the weekly chart. With a durable bottom in place, bargain hunters and bottom pickers started buying heavily. This ignited a strong rally that saw BAT/BTC climb to as high as 0.00005992 on November 8. Although the market has been correcting since, this gives us the chance to buy the dip.
Technical analysis shows that BAT/BTC may be establishing a bullish higher low setup of 0.0000335. This view comes after the market has managed to stay above this support for over two months despite numerous selloffs. During this period, bears have repeatedly attempted to breach 0.0000335. Their inability to do so has taken a toll on their momentum. As a result, the sell volume has significantly declined over the last two months.
With 0.0000335 holding, bottom pickers and bargain hunters have started to accumulate positions at this level. You can see this on the 12-hour RSI. This indicator is printing a large bullish divergence showing how the market is starting to gain momentum.
Lastly, 0.0000335 used to be a heavy resistance for BAT/BTC. With bulls defending this level, we are witnessing the flipping of 0.0000335 resistance into support. This is good bullish price action.
The strategy is to buy as close to 0.0000335 as possible. As long as bulls hold this support, they will likely ignite a rally to the range high of 0.00004523.
The process may take a month.
12-hour Chart of Basic Attention/Bitcoin on Binance
As of this writing, the Basic Attention Token/Bitcoin pair is trading at 0.00003421 on Binance.
Summary of Strategy
Buy: As close to 0.0000335 as possible.
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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