The price of Basic Attention Token has increased today to $0.20174994 at its highest point today coming from yesterday’s low at $0.131794 which was an increase of 53%. The price has pulled back since and is currently sitting at around $0.166144.
Considering the momentum behind the increase which was definitely impulsive and the vicinity of the descending triangle’s resistance line of a higher degree we could potentially be seeing the start of a breakout from the dominant structure which is in play since January last year. In today’s analysis, we are going to examine this possibility and further look into the price action and the potential behind the increase which was odd considering how correlated the market is.
BAT/USD Price Analysis
Looking at the BAT/USD daily chart you can see the mentioned descending triangle which started forming as a correctional structure after the price if BAT has made it first significant gains and came up by more than 634% to its all-time high at around $1.085. From there the price fell almost to the levels from which the increase has been made but slightly higher which was a decrease of 83.55% as the price came down to $0.17923 which is where the horizontal resistance line of the first horizontal range was serving as support.
On the daily chart, you can also see a lower resistance line from the mentioned triangle which is drawn with more interactions with the lower highs and represents the majority of the correctional area, but since the price went above it for two times and came back inside it the upper resistance line represents the whole correctional area.
Two red horizontal lines are considered to serve as strong support/resistance points as the lower level was the first established support after the coin hit the market and the upper the resistance line of that first created horizontal range and were both retested numerous times over the course of the last year or so.
As the price increase again from there it created another correctional prolongation inside which another Minor correction took place but has been labeled as a second correction inside the descending structure which is why I am considering the move from the orange Intermediate Y wave when the price of BAT was at around $0.39 the third correction which would constitute a WXY of a higher degree.
Zooming out further into the 4-hour chart I have counted the sub-waves of the presumed third consecutive correction and they verify my assumption as the wave structure looks correctional.
Today’s spike ended as an interaction with the upper horizontal resistance line and even though the price went out from the descending triangle we cannot say that a breakout has started as the interaction ended as a rejection and the price fell back inside the territory of the descending triangle again.
Zooming further into the hourly chart again I have readjusted the position of the A wave as I have examined further the sub-waves of the currently developing structure. As you can see the price has still more room to go according to my count before the Minor Y wave ends if it hasn’t ended altogether.
The price is now once again in an upward trajectory so we could be seeing the start of the last 5th wave of the third consecutive ABC which is why another interaction with the upper horizontal resistance line would be expected but when it ends soon so would the Minor Y wave which means that another impulsive downfall should start as the Minor Y wave would be the X wave of the Intermediate count out of which the W wave would be the 5-wave move seen on the 4-hour chart (blue).
Depending on the depth of the current 4th wave I am going to readjust the target for the expected ending point of the current increase as it could, in theory, go back below the lower resistance line to the vicinity of the 1st wave’s ending point in which case the target for the 5th wave would be lower as well.
The price of Basic Attention Token was shown an impulsive increase in the last 24 hours but considering what has been said in this analysis I believe that the price of BAT is lagging behind the major market moves and is still following the general market direction but correlating slightly less than usually seen on the charts of other major cryptos. The expected decrease that is likely to happen after the final minor increase would definitely be following the expectations of the broader market direction so the correlation is still seen.
In the past period the altcoins have been respectfully following the price of Bitcoin which is what I believe will continue until the bear market ends which is why I am expecting the same for the price of Basic Attention Token in the upcoming period.