On September 21, the Basic Attention Token price reached a high of 2207 satoshis. A downward move followed and BAT reached a low of 1900 satoshis on September 23. After a brief increase, it fell to the same level the next day.
Will the Basic Attention Token price decrease below 1900 satoshis? Keep reading below in order to find out the answer.
For our previous analysis, click here.
Basic Attention Token Price: Trends and Highlights for September 24
- BAT/BTC is following an ascending support line.
- There is support at 1900 satoshis.
- BAT has made a double bottom combined with bullish divergence.
- The 10- and 20-day moving averages have made a bullish cross.
- There is resistance at 2150 satoshis.
Ascending BAT Price Support
Looking at the Basic Attention Token price movement throughout September, we can see that BAT has been following an ascending support line since September 4.
Initially, this acted as a resistance line — before turning to support from September 19 onward.
Additionally, one support area is traced — found at 1900 satoshis.
The BAT price made a double bottom inside the support area on September 23 and 24.
This was combined with a bullish divergence in both the RSI and the MACD.
Since the double bottom is considered a bullish reversal pattern, the divergence makes us believe that the BAT price will continue to increase.
Let’s take a look at a different time-frame and see where it might go.
Looking at the daily chart, we can see that BAT has attempted to create an “Evening Star”, which is considered a bearish reversal pattern.
It followed a bullish candle on September 20 with a bearish doji and another bearish engulfing candlestick.
This is known as an evening star pattern.
However, it is not exactly textbook, since the BAT price close on September 22 is lower than the opening on September 20. Therefore, it is possible that this will be a failed pattern and BAT will resume its upward movement.
This view is supported when we incorporate the daily moving averages (MA) and the MACD.
The 10- and 20-day MAs made a bullish cross on September 18.
This was followed by a movement of the MACD line above 0 the next day.
This is often an indication that an uptrend has begun.
Additionally, we can see that the Basic Attention Token price has found support above the 10-day MA.
This makes us believe that BAT will continue to increase.
An outline of possible future BAT price movements, along with one resistance area, is given below:
BAT is likely to increase at the rate predicted by the support line until it reaches the resistance area at 2150 satoshis.
Once it gets there, the appearance of reversal signs will indicate if it will break out.
Basic Attention Token Price Summary
The BAT price is following an ascending support line.
According to our analysis, it is likely to continue its upward movement and reach the resistance area at 2150 satoshis.
For hypothetical trading purposes, BAT is considered a buy near the current price level of 1900 satoshis.
Do you think BAT will reach the resistance area? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.