BAT Bounces Above Long-Term Support

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In Brief
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On June 22, Basic Attention Token (BAT) completed a double bottom pattern close to the $0.41 horizontal support area.

It has been moving upwards since, and broke out from a descending resistance line on June 30.

Double Bottom

BAT has been moving downwards since April 9, when it reached an all-time high price of $1.69. Afterwards, it created a lower high on May 7 and resumed its downward movement at an accelerated pace. 

On June 22, the token reached a low of $0.42. Relative to the price on May 23, this created a double bottom pattern. The pattern was made inside the $0.41 horizontal support area, which is the 0.786 Fib retracement support level. 

The double bottom is considered a bullish reversal pattern. In addition to this, it was combined with bullish divergence in the MACD, RSI & Stochastic oscillator. 

If an upward movement were to follow, the closest resistances would be between $0.89-$1.03.

BAT Bounce
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The shorter-term six-hour chart shows that BAT has broken out from a descending resistance line. This supports the possibility that it will continue increasing towards the previously outlined resistance area.

BAT breakout
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Wave count

Cryptocurrency trader @Mesawine1 outlined a BAT chart, stating that a re-test of the $0.60 level would offer a good entry opportunity.

BAT Movement
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As seen above, BAT has already broken out from the descending resistance line. 

Furthermore, the downward movement looks like a completed bearish impulse. However, due to the overlap, it has to be a diagonal.

Nevertheless, this indicates that the most likely movement would be a bounce towards the previously outlined $0.89-$1.03 resistance area. However, the direction of the long-term trend is unconfirmed.

Diagonal
Chart By TradingView

BAT/BTC

The BAT/BTC chart is more decisively bullish. 

After creating a double bottom at the 1440 satoshi support area (0.618 Fib retracement), BAT broke out from a descending resistance line. 

In addition to this, technical indicators are bullish. The Stochastic oscillator has made a bullish cross and the MACD histogram is positive. 

The closest resistance area is between 2145-2313 satoshis, the 0.5-0.618 Fib retracement resistance levels.

BAT/BTC
Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

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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