BAL Breaks Out and Reclaims Numerous Resistance Levels

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In Brief
  • BAL is trading between support and resistance at $18 and $26.80

  • It has broken out from both a long and a short-term descending resistance line.

  • BAL is likely in a long-term wave 3.

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The Balancer (BAL) price has been increasing since breaking out from a descending resistance line on Dec. 29. BAL has reclaimed numerous resistance areas and looks like it will rally towards at least $26.

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Breakout and Reclaim of Resistance

BAL had been following a descending resistance line since Sept. 13. It made two unsuccessful breakout attempts before finally moving above the line on Dec. 28.

On Jan. 6, it also moved above the $18 area, which previously acted as resistance. BAL is currently in the process of validating it as support.

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If it continues rallying, the next resistance area would be at $26.80, the 0.618 Fib retracement level of the entire downward move. The following resistance area is at the all-time high price of $38.18.

Technical indicators on the daily time-frame are bullish, supporting the possibility that the upward momentum will continue.

Chart By TradingView

Cryptocurrency trader @Mesawine1 outlined a BAL chart, which shows the same breakout from a descending resistance line.

Since the tweet, BAL has already reclaimed the first resistance area at $18 and is now moving towards the next one at $26.80. A breakout above this level would likely take BAL towards a new all-time high.

Source: Twitter

Short-Term Movement

The shorter-term six-hour chart supports the possibility of upwards continuation.

BAL has broken out from a short-term descending resistance line and has followed that up with a reclaim of the $15 and the $17.50 area. As long as it’s trading above the latter, it should continue moving upwards.

Despite some bearish divergence on lower time-frames, technical indicators are still bullish, similar to those on the daily time-frame.

Chart By TradingView

Wave Count

The most likely wave count suggests that BAL is currently in an extended wave 3 (shown in white below), which has a possible target of $26.75. The target is found by giving waves 1:3 a 1:1.61 ratio, common in such impulses. Furthermore, it coincides with the previously outlined resistance area.

The sub-wave count is given in orange. The loss of the $15 minor support area would invalidate this particular wave count.

BAL Chart By TradingView

Conclusion

To conclude, BAL should continue rallying until it reaches the next closest resistance area at $26.70. A breakout above this level could take it towards a new all-time high price.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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