Today, I'd like to share with you my idea regarding Basic Attention Token (BAT). BAT has been in a downtrend since April of 2019 when it reached it's peak of ~0.00009360 BTC.
I'm not going to talk about fundamentals regarding BAT this post. I'll strictly share my thoughts on technical analysis and why I believe BAT is a good buy right now looking from short term and long term point of view.
Right now, BAT is sitting at 32nd place on Coinmarketcap, with a market cap of ~33.000 BTC at the price of 0.00002250 BTC which is around ~77% down from its all time high (ATH) price in terms of BTC.
As usual, let's look into the 1W candles to see the whole history of the coin:
As it can be seen, BAT has very noticeable cycles through it's existence since mid 2017. Potential resistances are marked with red lines, while supports are marked with blue line, plus one trend line that is currently being respected.
On the chart, it can be noticed how last week, BAT made a strongest volume spike ever on the price that is very close to it all time low. This means that there is still much demand on the coin, because even when the price was 200+% higher, we didn't see such volume. This volume occurred when price reached the ascending trend line and 0.2386 Fibonacci level which can be seen on th chart.
Based on the overall volume increase and based on the current price level, long term, this coin is in a very good place right now.
We see the Fibonacci levels which act as crucial targets looking at the support and resistances. Last week, price closed and bounced perfectly from 0.236 level and ascending trend line. Right now, price is sitting at 0.382 level which is to me a good price to start accumulating.
Targets are marked with red lines which we get from Fibonacci levels so for me the targets are:
- Target 1: 0.00002900 BTC
- Target 2: 0.00003200 BTC
- Target 3: 0.00003600 BTC
- Target 4: 0.00004200 BTC
- Target 5: *0.00005800 BTC
- Target 6: *0.00006400 BTC
- Target 7: *0.00007400 BTC
In summary, BAT has had increasing volume for the past 8 months and recently reached new peak. I expect some of these targets to reach by the end of 2020. Depending on the volume and price actions, optional targets are also possible.
That's it from me today. Tell me what you think about this idea and if you agree or disagree with it. See you all soon and have a nice day.