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.
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.