Basic Attention Token holders might be a bit anxious this month after the cryptocurrency has been slipping by a total of 13% over the past 30 days. The recent price fall has now seen BAT drop into the 30th position in the market cap rankings with a $397 million market cap.
It would be great to be able to tell BAT holders that things will work out over the next few weeks but in all honesty - I have no idea at this moment until BAT breaks out of the current consolidation it is trading within.
Looking at the chart above we can clearly see that since reaching a high around $0.46 in April 2019, BAT has rolled over and has started to trade within a very wide consolidation pattern. The market had dropped pretty hard to rebound at support at the $0.277 level provided by a .5 Fibonacci Retracement.
During May and June, we can see that BAT has been slowly grinding lower, not being able to break above the upper boundary of the consolidation pattern. Toward the end of June, we can also see that the support at the $0.277 level had prevented the market from slipping beneath the triangle.
Price action continues to grind it out as it slowly approaches the apex of the triangle where a breakout is expected. Typically, the breakout would occur before the apex of the triangle but let us see how this plays out.
If the market breaks above the triangle we can expect higher resistance above to be located at $0.36, $0.3782 and $0.40. If the bullish pressure can continue to push BAT beyond $0.40, higher resistance then lies at $0.42, $0.43 and $0.4479.
Alternatively, if the sellers push the market beneath the triangle and the support at $0.277, we can expect further support at $0.26, $0.25 and $0.2365 - which is further bolstered by the .618 Fib Retracement.
So Should We Buy Or Sell In June?
The answer is to wait and see which direction the triangle resolves itself within. If the market breaks above the triangle, there will be an opportunity to buy before we climb higher toward $0.40 and beyond. Alternatively, if the market starts to show signs it will break beneath $0.277 it might be worthwhile to sell BAT and pick them up a little later at a discounted rate of around $0.2365.