About two weeks ago, the Basic Attention Token (BAT) broke away from what has historically been the bottom of its market. Like many popular altcoins, it has been in a sharp downtrend after peaking during the summer. After months of bottom-finding, BAT seems to have begun a new uptrend and has put in about 70% of gains (against Bitcoin) in the past month -- and there is a good chance this uptrend will continue.
Starting on the daily BAT/BTC chart, we see that BAT has recently broken free of what has served as the multi-year inflection area (blue band) of this chart after a couple of failed tries. This breakout neatly coincided with a consolidation and final break around the 55 exponential moving average (EMA, purple).
This breakout clearly has some legs to it, with RSI peaks not diverging at all here, and the histogram pointing up parabolically at the time of writing. And true to form, another leg up is materializing at this moment.
Moving to the 12-hour chart, we see a more detailed picture of the current breakout as it materializes. BAT has broken free of its latest consolidation structure, as well as the RSI trendline which had been diverging bearish. A surge of buy volume has come in, and launched the histogram punching through the positive side of the range.
Finally, looking at a USD(T)-paired chart, we observe BAT’s progress retracing back through the Fibonacci range from the latest engulfing swing high, at about $0.28. Price here is just about to punch directly through the “golden pocket” of the Fibonacci range, between 0.618-5.
Doing so typically signals that the range will soon be entirely retaken, a sort of invalidating of that market structure. Indeed, if BAT is able to break and hold above the golden pocket on a retest, we should expect the uptrend to continue on to the knot of resistance likely at $0.30.
Popular altcoins like LINK, RVN, ZRX, and others have been burning up the charts in the past weeks, in an atmosphere of general decline on the Bitcoin dominance chart. BAT looks to be joining their ranks, with clearly exuberant buy support.
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