The sleeping giant that is Basic Attention Token (BAT) must have been stirred by its alarm clock or something after the cryptocurrency broke some major technical milestones against Bitcoin and started to climb by a total of 22% over the past week alone!
The cryptocurrency is now up by a total of 65% in 2020 after it bounced from $0.18 to reach the current trading price of around $0.30.
Basic Attention Token has long been considered a heavyweight within the industry and is possibly one of the strongest cryptocurrencies that actually has a specific use case that is being utilized by millions of people already!
Their flagship product, Brave browser, had already been downloaded by over 10 million people toward the end of 2019 and we can expect this number to much higher today.
If you don’t know already, it offers a privacy-focused browsing experience where user data NEVER leaves the host computer. Furthermore, advertisements and third-party cookie trackers are automatically blocked on the browser and only Brave approved advertisements are allowed (if you have the feature enabled).
In addition to this, each time you view an advert you get a share of the revenue in BAT through the Brave Rewards program. In short, every single one of you reading this article should already be reading it on Brave, but if you aren’t, it is not too late and you can download the browser here.
So, let’s continue with the price analysis and let me tell you about this important technical milestone that BAT recently penetrated against Bitcoin.
Basic Attention Token Price Analysis
BAT/USD - MEDIUM TERM - DAILY CHART
What Has Been Going On?
Taking a look at the long term BAT/USD chart above, we can clearly see BAT on the rebound as it starts to buck the previous bearish trend. 2019 was not too pretty for Brave as it reached a low of around $0.15, however, the cryptocurrency started to rebound from this support during mid-December and has not looked back ever since!
BAT quickly broke above the 100-days and 200-days EMA in January as it started its ascension higher. However, February is when BAT really took off as the cryptocurrency really started to rocket. In fact, BAT has actually surged by around 38% in the first 2 weeks of February alone.
The cryptocurrency recently penetrated above strong resistance at $0.28 which is provided by a long term bearish .382 Fibonacci Retracement level. This Fibonacci Retracement level is measured from the April 2019 high to the September 2019 low and we can see that it caused problems for the market during November 2019.
Nevertheless, BAT has now exploded past this level of resistance as it reaches the $0.30 level.
Where Can We Go From Here?
After creating a fresh near 3-month high, BAT is certainly on the bullish trajectory. It would need to drop back beneath the support at $0.22 (200-days EMA) to turn bearish again so it is pretty safe at this moment in time.
In the case that the sellers do push lower from $0.30, the first level of support can be located at $0.28. Beneath this, additional support lies at $0.27, $0.253 (.5 Fib Retracement), and $0.241 (.618 Fib Retracement).
What If We Don’t Even Pull Back?
Well, if we don’t even have any form of retracement and continue to break the $0.30 resistance level, the first level of higher resistance lies at $0.308 (1.272 Fibonacci Extension level). Above this, higher resistance lies at $0.318 (bearish .5 Fib Retracement), $0.325 (1.414 Fib Extension level), and $0.337.
If the bulls can push past the resistance at $0.35, higher resistance is expected at $0.358 (long term bearish .618 Fib Retracement), $365, $0.38, and $0.40. Beyond $0.40, we can expect extra resistance at $0.414 (bearish .786 Fib REtracement), $0.435, and $0.45.
What Is This Technical Milestone Against Bitcoin?
Well, for the past 9-months, Basic Attention Token has been trapped within a consolidation pattern against Bitcoin that is known as a symmetrical triangle.
Typically, the symmetrical triangle can result in a breakout in any direction but with the underlying bullish sentiment within the overall industry, the market has broken toward the upside of this triangle.
Take a look at it below;
So, What Does This Mean?
It means that the previous period of consolidation has finally been completed and we can expect the bullish momentum to start picking up from here. It does not mean that we are in a bullish trend just yet as we need to break the October 2019 highs first.
However, it does mean that the long term consolidation phase has now finished and we can expect a trend to develop over the following weeks.
Let us take a closer look at some BAT/BTC analysis;
BAT/BTC - MEDIUM TERM - DAILY CHART
What Has Been Going On?
Analyzing the daily chart above, we can first see the breakout of the symmetrical triangle that was highlighted in the previous chart above. The breakout also coincided with a push above the 200-days EMA - another technical milestone that BAT broke above.
We can see how troublesome 2019 was for BAT after it plummetted from May 2019 through September 2019. After bouncing, it started the consolidation phase that gave rise to the symmetrical triangle.
BAT only broke out of this triangle over the past 2-days so we are pretty early within this breakout phase!
Where Can We Go From Here?
The market will still be considered neutral until it can break and close above the October resistance at 3222 SATS. If it was to drop beneath 2220 SAT, the market would have a strong potential to turn bearish, however, this is extremely unlikely to happen.
If the sellers do regroup and push lower, the first level of support is expected at the 200-days EMA at around 2670 SAT. Beneath this, the previous boundary of the triangle should provide additional support, along with the 100-days EMA at 2535 SAT.
On the other side, if the buyers continue to drive above 3000 SAT, the next level of resistance lies at 3222 SAT which is provided by a long term bearish .236 Fibonacci Retracement level - which had provided strong resistance for the market during both October and November 2019. This Fib Retracement is measured from the April 2019 high-day close to the September 2019 lows.
If the bulls can clear this resistance, 3511 SAT, 3910 SAT (1.272 Fib Extension level), 4000 SAT, and 4220 SAT (bearish .382 Fib Retracement) will then provide additional resistance. Above this, further resistance can be expected at 4550 SAT (1.618 Fib Extension level), 5025 SAT (bearish. 5 Fib Retracement), and 5350 SAT.
The Bitcoin bullish run has certainly shifted the sentiment within the entire industry as altcoins start to make fresh multi-month highs. BAT is one of the cryptocurrencies that has experienced a helping hand from Bitcoin as it reaches fresh 7-month highs.
However, the bigger moves are still ahead as BAT breaks out from its long term period of consolidation against Bitcoin. Once BAT/BTC clears the resistance outlined at around 3222 SAT we can expect the bullish sentiment to truly explode within BAT and can expect some bigger moves. The good news is, it seems we are still pretty early to the party!
NOTE: As always, none of this is to be deemed as financial advice and you should only ever invest funds that you can afford to lose!