Trade Recommendation: Basic Attention Token

The Basic Attention Token/Bitcoin pair (BAT/BTC) sparked its bull run on December 20, 2018 when it breached 0.000023 resistance. The force of the breakout was so strong that it catapulted the pair to as high as 0.0000667 on January 9, 2018. In less than three weeks, the pair rose by 190%. Those who bought the breakout saw the opportunity to dump positions and take profits.

As sellers dominated the market, it plunged to 0.0000357 on January 16. Even though bottom pickers bought the dip, they were only able to push the price up to 0.00005975 on January 24. The lower high snuffed out the pair’s bullish steam. From that point, BAT/BTC has been generating lower highs and lower lows until recent events.

Technical analysis show that Basic Attention Token/Bitcoin appears to be respecting 0.000023 support. Volume surged on March 15 when the pair hovered above the 0.0000023 support. In addition, bulls rushed to defend the support when BAT/BTC dropped to 0.00002125 on March 18. So far, the market has managed to stay above the support level.

The strategy is to buy as close to 0.000023 as possible. If bulls continue to defend the support, the market will likely consolidate at this price before it can march to our target of 0.00004. The process may take more than a month.

Daily Chart of Basic Attention Token/Bitcoin on Binance

As of this writing, the Basic Attention Token/Bitcoin pair is trading at 0.000024 on Binance.

Summary of Strategy

Buy: As close to 0.000023 as possible.

Target: 0.00004

Stop:  0.000022

 

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.