Now that Bitcoin (BTC) is taking a breather from what is technically a long term uptrend, the crypto markets are going risk-off and altcoins have seen heavy selling as a result. One star performer from the past, Basic Attention Token (BAT), saw some slight gains during the initial 2020 surge but is still trapped under some key levels after being rejected. Overall, however, it seems to be uptrending in the long term.
We start on the weekly BAT/Bitcoin chart and immediately see an interesting candle from last week. There are huge wicks in both directions, although a larger sell wick, looking like a mid-trend spinning top. This wick topped out at a significant resistance from 2019, at roughly ₿0.000032, and this level likely forms the top of what is looking increasingly like a bullish consolidation.
We can say this because of the HTF higher low put in during 2019. The 55 EMA is slowly curling up, with the 8 EMA clearly uptrending. Finally, we saw major volume pour in during the last two weeks; and heavy buying into an uptrend should be bullish.
On the weekly BAT/Dollar chart, we see a similarly positive situation, with BAT’s price pushing up on regional resistance at around $0.27. We see the same extreme wicking in both directions, but overall stability at the end of the week and support near the 8 EMA which holds the uptrend.
Finally, if we come down to the daily BAT/Bitcoin we can see that all of the recent selling came with the general market decline; it is therefore not so much a reflection of BAT but rather of the crypto markets as a whole.
BAT looks like it’s recovering quickly, with two days of aggressive defense to push it back above a local support level. The histogram, although dipping into the red at time of writing, is rapidly arching back toward bullish expansion; and as such, the EMAs are still safely bullish.
Overall, this proven altcoin continues to look strong, despite the recent selloff. As we covered yesterday, altcoins are likely to continue gaining market share at Bitcoin’s expense by the look of the trend, and BAT should reap the fruits of this.
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