Basic Attention Token (BAT) Technical Analysis: Saved by Supports, Early Signs of Reversal Appearing

Basic Attention Token has had a turbulent two weeks so far, rising 64% after the recently announced Coinbase Pro listing followed by a rapid 36% decline shortly thereafter. While some believe the decline was a result of the United States SEC shining the spotlight on ERC-20 tokens after fining the EtherDelta exchange, the BAT/BTC chart shows a clear pump on the day of the announcement followed by a significant dump a few days after, both happening within a single hour candle. This is more likely to be the work of a whale trader or co-ordinated group of investors.

Right now, BAT appears to have found the bottom of its decline at a point where the 0.382 Fibonacci level (3,807 Sats) meets a second uptrending line that has been a key support for BAT in recent months. Although bears remain in control of the asset at this stage, there are a handful of signs beginning to appear that suggest bulls may be about to fight back and attempt a reversal.

Will BAT be able to recover its losses and pick up where it left off last week, or will bears continue to weigh down heavy on the asset’s progress? Let’s see what the charts show.

On the 4hr BAT/BTC chart, we can see that the asset has retraced perfectly back to the 0.382 Fibonacci level after falling from the temporary support at the 0.5 fib level above. The 0.382 support has been a particularly key level for BAT over the last two weeks, and has provided bullish traders with a level to collect along on November 1 before attempting another run.

Bears have recently started to react to the new support and reversing bullish momentum by driving the price action below 3,900 Sats. Despite the increased selling pressure, the chart indicators are still showing signs of a potential bullish reversal, provided bulls can continue to stand their ground.

-The RSI is starting to arc away from the lower quarter of the channel and back into the middle as buying momentum increases.

-The 12MA on the MACD indicator is getting close to bullishly converging above the 26MA.

-The CMF indicator line is spiking up toward the zero line above, as buying pressure starts to strengthen in the current trend.

We are still waiting for stronger confirmations to come from a bullish convergence from the 13 and 34 EMAs, as well as a crossover between the Aroon Up and Aroon Down lines on the Aroon indicator, before a bullish reversal looks more likely.

Basic Attention Token (BAT) Price Targets

All price targets are set from the asset’s current value at 3,896 Sats.

PT1: 4,400 Sats (12.94% ROI)
PT2:
0.618 fibonacci level / 4,646 Sats (19.25% ROI)
PT3:
4,970 Sats- revised after video analysis (27.57% ROI)

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Be aware that if bulls start to lose momentum at the 0.618 fib level we could have a very bearish h&s pattern form, should candles pass through the uptrending support level (see below).