Trade Recommendation: Basic Attention Token

We’ve been watching Basic Attention Token (BAT/USD) for a few days now. With its BAT/BTC counterpart aiming for all-time highs, we knew that BAT/USD is also bound to turn bullish. A quick look at the daily chart affirms our bias.

Technical analysis shows that BAT/USD has breached two resistances when it went above $0.22 on March 26. The first resistance taken out that day was the diagonal resistance. This was an important breach because the diagonal resistance has kept the market bearish for over a year. Bears relied on the resistance to generate one lower high after another. With that out of the way, Basic Attention Token is free to print its first higher high in a year.

The second resistance was the horizontal resistance. Breach of this level triggered the breakout from the rounding bottom pattern on the daily chart.

With two resistances gone, BAT/USD ignited a strong rally to $0.31395 on March 29. At that point, however, the market was massively overbought. Thus, a pullback was in order to enable technical indicators to cool off. This is where we can bottom pick the market.

The strategy is to buy on dips as close to $0.22 as possible. If bulls manage to hold this level, Basic Attention Token may rally to our targets of $0.3117 and $0.39.

The process may take less than a month.

Daily Chart of Basic Attention Token/US Dollar on Bitfinex

As of this writing, the Basic Attention Token/US Dollar pair is trading at $0.26699 on Bitfinex.

Summary of Strategy

Buy: As close to $0.22 as possible.

Targets: $0.3117 and $0.39.

Stop: $0.21

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.