Trade Recommendation: Basic Attention Token

Basic Attention Token

Basic Attention Token (BAT/BTC) is a market that’s been brutally clobbered in a short period of time. After posting 2019 highs of 0.000094 on April 21st, the market started to correct hard. The distribution was so strong that Basic Attention Token was driven to lows of 0.00002243 on June 27th. At that point, the cryptocurrency lost over 76% of its value in about two months.

Nevertheless, the severe drop may have pushed the crypto token to the point of maximum financial opportunity. It is now trading near a key support area that has never been breached for over a year.

Technical analysis shows that BAT/BTC is carving a bottom at weekly support of 0.0000225. We have this view for several reasons.

First, bulls have kept 0.0000225 intact since March 2018. So far, recent price action is telling us that bulls are doing the same this time around. The market quickly bounced at that level on June 26th. While the bounce was short-lived, we believe that bulls will retest the support and paint a double bottom pattern on the daily chart in order to reverse the trend.

In addition, BAT/BTC is trading near oversold conditions in the daily chart. The selling relief will help bulls defend the long-term support.

Therefore, the strategy is to buy as close to 0.0000225 as possible. As long as bulls hold this support, they will likely ignite a rally to our initial target of 0.00003453. Take that out and 0.000046 is next.

The process may take a month.

Weekly Chart of Basic Attention/Bitcoin on Binance

Basic Attention Token chart
As of this writing, the Basic Attention Token/Bitcoin pair is trading at 0.0000274 on Binance.

Summary of Strategy

Buy: As close to 0.0000225 as possible.
Targets: 0.00003453 and 0.000046.
Stop: 0.0000214

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.