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In yesterday's analysis, I said that I'm short BAT. But does that mean that my whole narrative on BAT being this super bullish asset is over? Am I still bullish on BAT?
Contrary to popular belief, yes I'm still bullish on BAT. Very bullish even. And I still feel it can pull a 2x out of nowhere.
However, the bull run has been delayed, and for good reason. BTC is moving big.
In one of my recent articles, I explained the correlation between Bitcoin and altcoins. Bitcoin's moves make altcoins wet themselves, and that is the case here.
Bitcoin pumped to 11k, and destroyed a perfectly good setup on BAT. I still hold BAT from 0.08, but some of my telegram group members got stopped out at breakeven.
Bitcoin's moves shake the whole market. Now that does mean that everyone is affected by small moves that Bitcoin makes. However, I see Bitcoin's moves as a chance to scoop up your favourite assets at discounted prices.
From the screenshot, BAT lost the uptrend line on the daily, but previously had bounced off perfectly from it. What this means is that there is a deviation from the main trend. As we can see, there hasn't been any follow through with this break. Which means that there's possibly a range deviation at play here.
The RSI on the daily is also forming a descending pattern. With this amount of confluence, BAT may very well breakout of this pattern and start it's journey to Namek.
The only problem is Bitcoin. Bitcoin's dominance still has a little strength, as it recently bounced from support. What we want is a total annihilation of this ratio, so we can see some real altcoin pops.
That said, until Bitcoin is stabilized, BAT will still suffer. But when Bitcoin finally cools off, we'd see a real pop from this one.
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