On June 26, 2019, the Basic Attention Token (BAT) price reached a low of 2353 satoshis. An upward move ensued the same day. On July 28, it had reached a high of 2893 satoshis. It has been decreasing since.
At the time of writing, it was trading near 2600 satoshis.
How long will the decrease continue? Continue scrolling below in order to find out.
For our previous analysis, click here.
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Basic Attention Token Price: Trends and Highlights for July 30
- BAT/BTC broke out from a descending wedge.
- There is very significant support near 2300 satoshis.
- Daily moving averages have made a bullish cross.
- There is resistance at 3300 satoshis.
Previous Movement
In our previous analysis, we stated that:According to our analysis, BAT will eventually break out from the wedge.
On July 26, the price broke out.
The breakout occurred with above average but not extreme volume.
In these cases, it is customary for the BAT price to decrease until it touches the previous resistance line, before resuming its upward movement.
Long-Term Support
An interesting development is that the breakout was initiated from a very significant support area.
The 2300 satoshi level has acted as support since March 2018.
Furthermore, the previous two times it has done so, the Basic Attention Token price has begun upward moves.
Is this the beginning of the third one?
Let’s take a look at some technical indicators and determine if that is likely.
Bullish Sentiment
First, we will begin with an analysis of daily candlesticks.
The breakout occurred on July 26.
The daily candle was a bullish engulfing one, followed by another bullish candle.
While the recent BAT price decrease looks significant at first glance, we can see that it is easily contained within the body of the breakout candle.
Therefore, we can still consider the recent decrease as a response to the prior rapid increase.
This view is supported by the declining volume over the past three days.
The volume for July 28, 29 and 30 pales in comparison to that on July 26 and 27.
Also, we can see that there was massive volume on July 19, preceding the breakout.
Finally, a look at the daily moving averages (MA) confirms that we are in an uptrend.
On July 27, a bullish cross transpired between the 10- and 20-day MAs.
The price has been trading above both MAs since.
It is important to keep an eye on if the BAT price will find support above the 10-day one.
The use of these indicators and prior price movement makes it likely that BAT will continue its upward movement.
Reversal Areas
If the Basic Attention Token price continues to increase, one resistance area is outlined above.
It is found near 3300 satoshis.
We believe that it is likely that the price will reach it.
However, a slight short-term decrease might occur before it does.
BAT Price Summary
The BAT price recently broke out from a descending wedge. According to our analysis, it is likely to increase until it reaches the resistance area outlined above. 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.
