Basic attention token, the brave browser cryptocurrency, has shown positive volatility in recent weeks breaking major support levels and finally exiting the bearish channel it has picked up since the beginning of the year. In this article I intend to do a price analysis of BAT as well as bring some possibilities for the future of the asset.
Since March this year we have been on a downward channel that has been broken recently, this tells us that the downtrend has come to an end.
Looking briefly at BAT's market capitalization, we see that near the end of the bearish channel on September 26, we have a strong and rapid return on capital. This may be for a number of reasons that should not be addressed here, but it can serve as a guarantee that this trend is finally over.
By plotting a fibonacci and applying the moving averages of 51 (purple) 100 (white) and 200 (red) we have crossing the moving average of 51 over 100 has had a positive effect on buyers, giving them confidence to assume the market. The fibonacci indicates that we are close to a very important zone that, if broken, we will be able to see the BAT looking in a very short time between $ 0.31 and $ 0.34. And the 200-period moving average is serving as temporary resistance to the price.
Currently the expected move to price and the moving average of 200 is this. The price can gain a lot of strength and break through these important resistances causing the price to reach something close to the previously mentioned so that it falls, at this point of decline the moving average of 200 will be close to leaning positively giving the expected signal for an entry still greater capital in the market causing the price to make rapid price movements and starting the expected bull run.
As we have an easier view of what follows, we can see here on the weekly chart that the number of trades being made in BAT is significantly higher than in past periods, and we also see the positive crossover of moving averages in MACD giving us one more confirmation that the price is ready to spend another large period of time rising.
Still on the weekly chart and applying the elliot wave theory, we can consider the movement of the beginning of the year to be the top grade wave 1, this strong correction a wave 2 and we are now entering a wave 3. This wave 2 had the characteristic of being quite long and deep, so it is natural for wave 3 to be extended, applying the standard wave extension levels we have the value of $ 1.20 as a reference, so as we had a long and deep wave 2 is more common see a lateralized corrective wave 4, so a possible price return point after reaching a value close to $ 1.20 would be somewhere between $ 0.60 and after that the expected value of a wave 5 is close to $ 2.00.
Here I have tried to briefly and simply address my view of what is currently happening with the BAT and some short- and long-term possibilities of the asset. I hope I have helped and from now on is keeping an eye on and managing capital during the trades. This is a purely theoretical projection and should not serve as an investment advice. Just my insight into future possibilities.
Thank you for reading :D