Basic Attention Token (BAT) weekly chart outlook and why it will grow a lot long term !

Basic Attention Token (BAT) weekly chart outlook and why it will grow a lot long term !

By Djordi | DJCrypto | 17 May 2020


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Basic Attention Token is being discussed a lot on Publish0x, and rightly so. They try to revolutionize the internet with their Brave Browser and go up against a giant like Google.

In this article I am going to show the weekly outlook of BAT compared against the dollar on the Binance exchange. I will put on different indicators :

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The first indicator I have on this weekly chart is the OBV, or On Balance Volume. It tells you what the smart money is doing. We see a clear channel of price action for Basic Attention Token and The OBV is showing a clear channel as well. The OBV shows clear accumulation since the bottom area of January 2019. We see OBV right now hitting the top of the channel and it could well mean we will see some downside first for BAT, but the level of OBV is extremely high and this is a great sign ! For the longer term it will mean price should move upwards a lot.
What we can see clearly as well is that price is creating lower highs and the OBV is creating higher highs. This is bullish divergence, but once again it will take quite some time to play out, so patience is key. Since we move in a price channel that shows lower highs and lower lows, we have to keep assuming that we are continuing this trend, until we break out to the upside. Important levels to watch towards the upside are the 0,25/0,26$ levels and to the downside the 0,07$ level. The 0,07$ seems too low for me and I do not believe we will get there anymore.

When I watch altcoins, I always look at Bitcoin as well. Bitcoin leads the crypto market so if it decides to drop hard, alts will drop hard as well. Depending on the percentage of BTC drops, you can kind of calculate the percentage drops of most alts as well. I believe that Bitcoin will stay at least above the 6.3K level, so we should not see a higher drop than 33% in this case. However I am looking closely at the 8.2K/7.8K range and the 7.2K/7.5K range. This would mean less heavy drops, and it will give altcoins less drops as well. In general altcoins drop a little harder than BTC so if Bitcoin was to drop 33%, I can see BAT drop for like 50%. This would give at the moment a price target of around 0,10$, but once again I am more closely watching if BTC can hold in between 7K and 8K. This would give BAT a change to create strong support around the 0,15/0,16$ range.

Here is another weekly chart with the indicator RSI (Relative Strength Index) and the CMF (Chaikin Money Flow) :

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The Chaikin Money flow is a volume-weighted average indicator that shows accumulation and distribution over a specific period of time. It will tell you the buying pressure and the selling pressure in a period of time.
I have drawn a red line in this indicator to show that in the last couple of years, we see a clear declining sell pressure on BAT. This is a good sign and seems to indicate that strong hands are holding on and that we have less and less weak hands. At the same time we see a strong accumulation phase around April of 2019. After that in terms of uptrend we have not seen much, but this is not necessarily a bad thing. We are getting closer towards the end of the long channel that the price is in and this means that volume is slowly declining as well. People are waiting to see a breakout before reacting.

The RSI seems to be moving in a channel as well and it is moving towards the end of the upside line right now. It seems likely to me that we would get rejected first before breaking out of it towards the upside. Either way if it was to break to the upside already, it will still have plenty of space to move to the upside, before we are hitting overbought. It gives clear room to break the price channel to the upside and move decently upwards, before hitting overbought and correcting to the downside. Correcting to the downside should in that case create support on the red line that is drawn to show we have once and for all left this long red channel ! There are no bullish or bearish divergences at the moment for BAT on the RSI and it is showing a downtrend, just like price. I am still assuming that we will get rejected first and move to the downside, before we are going to breakout to the upside and leave the channel.

Conclusion

Basic Attention Token seems to be slowly getting ready to break the channel to the upside and move upwards for the next couple of years. The Chaikin Money Flow is showing less and less selling pressure which indicates that there are less weak hands in the market. Furthermore OBV is showing clear accumulation going on for BAT and this is a great sign.
Most likely we will see a downwards move first before we are going to break the price channel to the upside for good. On the RSI we are getting close to resistance and on the OBV we are hitting the resistance right now. Another reason to look for some downside is that we have 9 green weekly candles in a row which is a lot !
Patience is key for this Token and hodlers will get rewarded for their patience ! The price of BAT for the longer term future will go above 1$ and I believe we can see more growth for this altcoin and even 5$ is not out of the question, but do not take my word for it !

This is not financial advise and I am not a financial advisor. Please do your own research and make your own decisions.


Djordi
Djordi

I am Djordi van Kampen and I live in France. 2017 was the year I learned for the first time about cryptocurrencies and I am intrigued by what it can accomplish in this world, for the better of course !


DJCrypto
DJCrypto

Crypto enthusiast that would like to share his experience in the market in terms of investing and trading. Also travels a lot and likes photography and minerals.

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