Basic Attention Token (BAT) confirmed the start of a new upward movement that could take it to a new all-time high.
BAT broke a descending resistance line on October 30 and was up 43% on the same day. breakout was significant both for its magnitude and for the fact that the resistance line had been in place since the all-time high in April. se breakouts usually confirm that the correction has come to an end.
After breaking out, BAT managed to hit a high of $ 1.47 before falling. fall left a long top wick in place and the token has since declined.
refore, it only caused a deviation above the 0.618 Fibonacci retracement resistance at $ 1.17, which is still the closest resistance area.
BAT is now trying to find support before the bullish move resumes, supported by technical indicators.
MACD, created by a short-term and long-term moving average (MA), is positive and on the rise. This means that the short-term trend is increasing at a faster rate than the long-term trend.
RSI, which is an indicator of momentum, is above 50. This is a signal of bullish momentum that often accompanies bullish movements.
If BAT manages to break the resistance at $ 1.17, the next resistance area would be at $ 1.58, very close to the all-time high.
TradingView Chart
Future movement
short-term six-hour chart shows that BAT is currently at a confluence of support levels at $ 0.95. This area coincides with both the 0.618 Fibonacci retracement support level and the previous resistance area, which will now potentially act as support.
Read also blockchain bond test of the French Central Bank shows the first results
However, there are no signs of a bullish reversal nor is a bullish structure in sight.
TradingView Chart
short-term two-hour chart shows that BAT is following a descending support line. Similar to the six-hour chart, there are no signs that a reversal is taking place.
If the token breaks out of the support line, the next support area would be at $ 0.81. This is the 0.786 Fibonacci retracement support level and a short-term horizontal support area.
TradingView Chart
BAT wave count
Cryptocurrency trader @TradingHubb tweeted a BAT chart, indicating that the token started the upward movement of the third wave of five waves.
Source:
Since the tweet, BAT has already started a strong upward move. It appears to be on wave three (orange), which is the sharpest of the five waves. subwave count is indicated in black.
current decline is most likely part of a fourth wave retracement, in which a sharp decline is followed by an equally sharp upward movement that completes the fifth and final sub-wave.
A fourth wave retracement usually touches the resistance line of the previous parallel channel, which in this case coincides with the $ 0.81 support area outlined above.
refore, this would probably be the minimum if BAT were to resume its decline.
TradingView Chart
For the latest news from BeInCrypto bitcoin / »class =» autolink »target =» _ blank »> Bitcoin (BTC) analysis, click here.
What do you think about this topic? Write us and tell us!
Disclaimer
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader on the information found on our website is strictly at your own risk.
Also Read Poly Network Hack: Rethink the “Real Hacker” Scenario
Source link
more
