BAT Pulls an XLM! (And not in a good way)Since my last BAT chart, we hit pretty close to one of my higher targets ( near 10000), but were unable to get above, confirming that the supply zone still exists. I've been talking about this with BAT for quite a while. That supply zone exists because that's where BAT was first dumped when it got on the market.
Since the top, BAT has followed a similar trajectory to XLM before the November selloff. This means we're back below one of the previously broken diagonal resistances already (orange). If we cannot get back above soon, we can assume that BAT will head to the lower triangle (light blue), in the 3400 area. If that cannot hold...just as with XLM, BAT can head to new lows. This would mean 1000 or lower is in the cards. People will say "but fundamentals are stronger than even!" Did that do anything for IOTA's price? No it didn't. People are still not seeing much value in holding cryptocurrencies, even if they are being used.
Just for comparison, this is what XLM did last fall:
I think the chance for the altcoin market to look bullish is diminishing. I would like to be wrong here, but the signs are getting increasingly negative. The market likes to flip on a dime, but these indicators have been lingering for weeks. I guess we'll see how this unfolds. Sometimes the market looks the worst before it gets better. On the bullish side, if BAT can get back above that orange line and HOLD, we may be able to confirm a new range. BAT has a history of wild daily swings, so be careful trading. It could head back up quickly, only to go down twice as fast. And vice versa.
This is not financial advice. Just something I'm seeing and this is for personal use and future reference.
-Victor Cobra
