After a pause I've taken from writing I'm back with a fresh analysis of BAT (Basic Attention Token).
I suggest checking my last article on BAT from 23th March as I will start off by giving you an update on that one: https://www.publish0x.com/bat-fans/one-bat-higher-heights-technical-analysis-rocket-fuel-xzdwo
Just by taking a quick look on the above chart you will notice that the price action respected my blue box drawn in March very smoothly. We've had a breakout of the upper resistance by the beginning of April but the move was sustained on very little volume in comparison with the other retests of the box which signifies a weaker move that is not backed up by many buyers. Also indicates low liquidity in the markets.
However after the first pass the market retested the blue box and bounced perfectly to a new ATH against BTC. Again the volume was decreasing which is a sign of distribution. Moreover we had massive RSI bearish divergence on the daily which usually is a strong indication that the market wants to reverse (refer to the below chart).
The blue box has been broken downside as the bears got control of the market. The 10 SMA and 21 EMA showed that the move is accelerating and we even formed a descending triangle which is more visible on the 4H timeframe:
Taking us back to the present price action BAT is at a very important support level on the weekly timeframe. It is imperative that the bulls hold the 2300 sats level or we might see further downside on the BTC pairing even down to 1100 sats. The RSI is in the bearish control zone and heading down. The Stochastic is bottomed out in the oversold level, but that does not mean that it can't stay there for some time.
The daily is gaining momentum to the downside but we don't have a clear confirmed break of the 2300 horizontal level yet. Personally I'd look for a strong red candlestick accompanied by volume as we are a major support level.
In conclusion as most of the altcoins out there BAT isn't in a 'pink' situation but if we hold this level it would be a good sign that there are strong supporters for BAT in the market. Make sure you guys keep an eye on the Bitcoin dominance chart is it is approaching the 70% level which should be a strong resistance( + psychological).
Thank you for reading my analysis and if you have any suggestions, feedback or questions I highly encourage you to post them in the comments!
DISCLAIMER: This is NOT intended to be financial advice. The content in my articles strictly represents my personal technical analysis and views of the market.
NOTE: The article should have been published on the day I have made the charts, but from organizational(objective) reasons I have only been able to publish it today. I apologise for the inconvenience, but I'll do my best so we won't find ourselves in this situation in the future.
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