BAT analysis of price developments

BAT analysis of price developments


Hello to you. If you clicked on this article, it is certainly that the news of BAT interests you. I already had the opportunity to write an article about the growth of the Brave internet browser and you rather enjoyed it. Thank you for your comments and tips.


We had the opportunity to analyze the development of this software. Today we will be able to deepen our knowledge on his token, the BAT (Basic Attention Token). I know that many of you don’t know much about cryptocurrencies, so I’ll try to be as clear as possible.

I see many articles that often propose projections to try to understand the future evolution of a currency but beware, it is always necessary before trying to understand the past evolution of a market before being able to make assumptions about future developments. This is in any case the method I recommend. In this exercise, I will put you a little to exercise so be attentive and train you!

For this analysis, I chose to analyze the evolution of the BAT prices since its creation. Here is the graph (price) of the BAT. Take a good look and try to divide this chart into 4 areas…

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Have you tried this method? Let’s compare our results! Here is the representation of the divisions that I realized.

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Before justifying my analysis, I write below the meaning of the colors of the divisions:

In red: launch

In blue: Immaturity/ very high volatility

Green: Beginning of maturity/ price stabilization

Yellow: Drop related to Covid-19

If you have at least managed to you that there were two major phases (green/blue), bravo! The red and yellow area are more complex to see. Well, now I’m going to justify my opinion on the evolution of the BAT. The red zone is very specific to all new cryptocurrencies/Tokens that are issued on the market. In fact, the vast majority of them are devaluing in their launch phase. A priori, this is not worrying although this price decrease is sometimes fatal. To know whether it is fatal or not, you have to look at the next area. The blue area. If it stagnates and does not see any increase in the two years following its launch, it is possible that this currency/token is quickly classified in the Deadcoins!

Here, fortunately for me, the price of the BAT has fluctuated a lot. It is sometimes said that the market has looked for itself. As a reminder, in the blue phase, BAT version 1.0 was not yet available! then in the end of 2019, we see a new trend (I would say even two). The market has stabilized between $0.12 and $0.42. Except for a small tip above $0.35, we can say that the market evolves between $0.12 and $0.35. The prices of the BAT have stabilized but be careful this does not mean that they will not move anymore. The second element that is revealing of a beginning of maturity is the volume of BAT, it has increased considerably!

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This is most certainly due to the fact that the number of Brave users has increased strongly (+8 million in 6 months). The volumes exchanged therefore naturally followed this upward trend. There is obviously the small drop related to covid-19 (yellow). This downtrend is exceptional but to remember because it gives us a model of crash in case of major crisis. The recovery was relatively fast which is very clearly a sign of confidence on the part of investors and advertisers (sometimes retail) who buy BAT.

Let’s take a closer look at the area of early maturity (green).

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We can deduce two areas (green and red on the next graph) that will certainly be very important (see below). This is the maximum increase area (green) and the maximum decrease area. Personally, if we reached the red zone, I would move on to buying. Conversely, if we reached the green zone, I would sell.

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Be careful, this is only a personal analysis. I am not an investment advisor.
Since version 1.0 is very recent, the growth in the number of users, advertisers and creators using the BAT is increasing strongly, it will be necessary to readjust your sales and purchasing areas regularly. We can’t say yet that the market is mature. We can no longer talk about the beginning of maturity.

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Generally I also define a central area that contains 80% of price changes. I call it the median area. It’s very personal, no ideas if anyone else does.

Now that we have reviewed the history of the evolution of the BAT, you only have to make your projections!

Conclusion

The BAT has become less volatile and is beginning to find a balance in terms of price. Attention however, the currency is very young and its prospects in terms of usage is increasing very rapidly. Its number of users in all categories is exploding. It will therefore be necessary to quickly redo a general analysis as I just did to see if the areas of purchase and sale have moved!

The analysis I have proposed to you is very general is if you want to do BAT trading, you will have to go much further in your analysis. And regularly to make analyses course terms that I have not done here since the objective of this article is to understand globally why the BAT has evolved like this since its release.

Thank you for reading this article! See you soon!

Disclaimer: This article is an adapted translation of one of my articles on my French blog. I write in English to increase my visibility and to practice writing in English. If I make language mistakes tell me in the comments, it will help me to write even better in the future! Thank you very much.

Pour lire cet article en Français, rendez vous sur mon blog Galaxie Crypto !


Galaxie Crypto
Galaxie Crypto

When I was 17, I got into cryptocurrencies. This adventure allowed me to develop for many years my knowledge on the subject! I am now active in investing in cryptocurrencies. I am also present in the real estate world in Belgium.


Galaxie Crypto (ENG)
Galaxie Crypto (ENG)

This blog is the English version of my initial bolg. The visibility of my blog in French is very limited. My goal in this blog will be to popularize or condense information about cryptocurrencies. If I make mistakes in English, please help me improve! Let me know in the comments.

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