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BAT Technical Analysis: Bear Cycle Warns 20% Price Drop This Month

Analytics

cryptoknowmics.com 19 August 2022 10:51, UTC
  
Reading time: ~2 m

The BAT price action shows a bearish reversal as the buyers fail to push the trend above $0.22, resulting in a retest of the $0.20 breakout.

Key Technical Points:

  • The Basic Attention Token price dropped by 20% last week.
  • The bearish reversal rally breaks below the 50-day EMA and warns of the $0.35 fallout.
  • With a market cap of $549 million, the intraday trading volume of Basic Attention Token has increased by 25% to reach $65.98 million.

Past Performance of BAT

The BAT price action shows a bullish failure to sustain above the 100-day EMA due to the increased supply pressure at the $0.46 horizontal zone. The reversal rally breaks below the 50-day EMA and challenges the buyers at the crucial support level of $0.35, accounting for a 20% price drop. Moreover, the streak of four bearish candles with higher price rejection increases the possibility of a downtrend continuation as the selling price increases. TradingView Chart Source - Tradingview

BAT Technical Analysis

The BAT prices might shortly reach the crucial support of $0.28 if the buyers fail to maintain dominance at the $0.35 mark. Hence traders can soon find a selling opportunity if the horizontal support level falls. As the market price falls below the 50-day EMA, the possibility of a bullish crossover between the 50 and 100-day EMA nullifies. The daily RSI slope displays a remarkable increase in the underlying bearishness as it drops into the nearly overbought zone. Moreover, the MACD indicator signals a selling opportunity with the recent bearish crossover with a boom in bearish histograms. Hence the technical indicators maintain a bearish bias for the upcoming trend. In a nutshell, the BAT technical analysis signals an upcoming short selling opportunity as the increased selling pressure threatens a fall below $0.35

Upcoming Trend

BAT prices might continue the downtrend, resulting in a 22% drop to take support at $0.28 if the $0.35 support level falls. However, a bullish turnaround from $0.35 might re-challenge the sellers at $0.45 Resistance Levels: $0.40 and $0.45 Support Levels: $0.35 and $0.28


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