Trade Recommendation: Basic Attention Token

Basic Attention Token (BAT/BTC) is in the early stages of what can be a monster bull run. We have this view because the market spent more than a year in range accumulation. From January 2018 to April 2019, Basic Attention Token range traded between 0.00002 and 0.00006. Keep in mind, the longer the space, the higher the base. 15 months of base building puts the market in a great position to supersize the capital of investors.

Technical analysis shows that BAT/BTC has taken out resistance of 0.00006 on March 28, 2019. This triggered the breakout from a large triple bottom pattern on the daily chart. The price action ignited a breakout rally that saw Basic Attention Token climb as high as 0.000094 on April 21st.

At that point, Basic Attention Token was showing signs of exhaustion. The daily candle had a long wick above the body to indicate the emergence of sellers. In addition, a bullish divergence can be spotted on the daily RSI. With these signals, the market started to correct. This can be your chance to buy the retest of the support.

The strategy is to buy on dips as close to 0.00006 as possible. The successful retest of this area as support will likely catapult BAT/BTC to our targets of 0.000076 and 0.000094.

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 0.00007072 on Binance.

Summary of Strategy

Buy: As close to 0.00006 as possible.

Targets: 0.000076 and 0.000094.

Stop: 0.000057

 

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.