BAT Reaches Long Term Support Marked By a .886 Fibonacci Retracement Level

Basic Attention Token has experienced a 13% price relief over the past 24 hours of trading. The cryptocurrency is currently trading around $0.20, at the time of writing, after suffering a price decline totalling 14% over the past 7 days of trading.

Basic Attention Token is a cryptocurrency designed to rethink the way that advertisements are delivered upon the internet. They will achieve this through their integration with their web browser, Brave, which has already reached over 3 million users.

The Brave browser comes integrated with features that block adverts, trackers and cookies. One user on Reddit, user handle /u/boonikad93 has posted his cookie blocking statistics after using Brave for 6 months;

tracker 1_15 aug 2018

We can see the sheer number of trackers and ads that have been blocked with an estimated 3.7 hours saved from not having to load these bytes of data in the 6 month period.

The BAT team also has a strong advantage due to the sheer size of its team. At the last count, the team has over 67 members working together to make this project a success. They have recently announced that users will soon be able to tip their favourite content providers on reddit and twitter expanding the overall use cases of the token.

BAT is currently ranked at 37th position in terms of overall market cap across the entire industry. The 14 month old coin has a total market cap value of $202 million and has suffered a steep 43% price decrease over the past 30 days.

Let us continue to analyse price action over the long term for BAT against the USD.

Price Analysis

BAT/USD – LONG TERM – DAILY CHART

bat 15 aug 2018

Analysing the market over the long term perspective, we can see that BAT token had experienced a significant bullish run when price action started from a low of $0.0658 on the 18th of July 2017 and extended to an all time high of $1.04 on the 9th of January 2018. This was a total price increase totalling over 1580% from low to high.

We can see that after placing the all time high, price action went on to rapidly decline, originally finding support at the .618 Fibonacci Retracement priced at $0.43, during January. This Fibonacci Retracement is measured from the entire bullish run outlined above. The market continued to decline during February, slipping under the 100 day moving average until support was found at the .786 Fibonacci Retracement priced at $0.27.

During March 2018, price action continued even further lower, finding support at the .886 Fibonacci Retracement priced at $0.17. For the majority of the remainder of the trading year, so far, price action has remained to sustain itself above this handle.

Let us continue to analyse price action a little closer over the short term to highlight any potential support and resistance areas.

BAT/USD – SHORT TERM – DAILY CHART

bat 15 aug 2018 2

Analysing the market from the benefit of a shorter time horizon, we can see that the market had experienced another smaller bullish run during April, as price action started from a low of $0.16 on the 1st of April 2018 and extended to a high of $0.57 on the 3rd of May 2018. This was a price increase totalling 230%.

We can see that after placing this high in May, price action went on to decline once again throughout May until support was found, once again, at the long term .886 Fibonacci Retracement priced at $0.17. We can also notice that the market had found more specific support, during June, at a downside 1.272 Fibonacci Extension level priced at $0.19. This Fibonacci Extension is measured from the bearish swing leg seen during May.

Currently, price action has once again found support at the .886 Fibonacci Retracement level priced at $0.17 and has rebounded from this level. We can see that in yesterday’s trading session, price action had penetrated aggressively below the .886 Fibonacci Retracement, briefly, to find support at the downside 1.414 Fibonacci Extension level priced at $0.15.

If the bulls can continue with their momentum experienced over the past 24 hours and push prices higher, we expect immediate to be located at $0.21 (a short term .886 Fib level not drawn on the chart). Further resistance above this level can be expected at the psychological round number handle of $0.25 followed by resistance caused by the 100 day moving average which is currently trading around the $0.28 handle.

Alternatively, if the bears regain control once again within the market, we expect immediate support to be located at the long term .886 Fibonacci Retracement level once again priced at $0.17. Support located below this level is then expected at the downside 1.414 Fibonacci Extension priced at $0.15. If the market falls below this level we expect further support to be located around $0.13 which are the December 2017 lows.

The technical indicators are currently heavily favouring the bears at this current moment in time within the market. The RSI is trading well below the 50 handle just above extreme oversold conditions. RSI is making its way back toward the 50 handle which indicates that the bearish momentum is fading. A break above the 50 handle would indicate that the bulls are now starting to regain traction within the market.

Similarly, the moving averages are all aligned in a manner that heavily favours the bears. The shorter moving averages are all trading below the longer moving averages indicating that the bears are still pressuring the market lower. For an abdication that the bulls may be gaining some form of intermediary control, we will look for the 7 day EMA (blue line) to make its way toward the 21 day EMA (purple line). A cross of the 7 day EMA above the 21 day EMA would signal a bullish crossover indicating that a potential bull run may be about to take place.

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