BAT can breakdown the support to complete the BAT patternA Recap:
In my previous post we have see that the Basic Attention Token had found the resistance at: $0.1959 and support at : $0.1487 and this support was not broken since 29 Aug 2019 when the price action took drop more than 29% upto $0.1326 but failed to breakdown this support.
And after finding this firm support the price action was moving sideways above this support level since Aug 2019 to Dec 2019 and in the meanwhile the price action was hitting the upper band of Bollinger bands and the mouth of bollinger bands was expanding and moving up and Relative Strength Index ( RSI ) was oversold up till 18 Dec and was turned bullish and Moving average convergence divergence ( MACD ) was turned strong bullish.
The Directional movement the +DI has crossed up -DI and ADX is above 29 level and giving strong bullish signals.
And upto 12hr chart the Ichimoku cloud was turned bullish and lagging span of ichimoku cloud had crossed up the priceline and the price action also crossed up the bearish cloud on the other hand the chop zone had also given strong bullish signals by turning bullish.
On daily chart simple moving averages were also expected to form an open Alligator’s mouth and with all these bullish signals the price action also formed a bullish Shark pattern and entered in potential reversal zone.
Based on all above indicators I predicted that the priceline of BAT token will now breakout the $0.1959 resistance and it will hit the next resistance at: $0.2695
Now What Next? :
Retesting The Previous Resistance As Support:
Now we can see that the price action not even broke out the $0.1959 resistance but also has broken out the $0.2695.
From this level the Basic attention token was expected to retest the recent broken resistance as support and move up to next resistance level at $0.4067 as the BAT token did after breaking out the previous resistance level of $0.1959.
But this time while retesting the recent broken resistance as support the candle sticks are likely to cross down this support or retesting is being failed.
This candle stick is the make or break for Basic attention token because if this support will be broken down than the price action may move more down to retest the previous resistance level at $0.1959, in this situation the coin will loss 39% of its value from the recent high of $0.3221.
But in case the sell will be stopped here and price line will not breakdown this support then we may see the price action to move to next resistance level at $0.4067 and after this resistance level will have only one and final resistance at $0.4493 and if this final resistance will be broken out then the Basic attention token can start a very powerful rally to make new high that will be highest price ever in the history of BAT token.
A Formation Of Bullish Harmonic Pattern:
If we see the short term 4 hour time period chart then the price action is forming a bullish BAT pattern and at this time the final leg C to D is being formed the dimensions of this pattern is as below:
After initial leg (X to A) the A to B leg is retraced between 0.382 to 0.50 Fibonacci and then B to C leg is almost projected between 0.382 to 0.886 of A to B leg's Fibonacci projection (here I have ignored extra spike coz all other legs are perfectly driven) now the final (C to D) leg should be retraced between 0.786 to 0.886 Fibonacci for a perfect bullish BAT pattern and then the price action will be entered in potential reversal zone of this bullish BAT pattern.
As per above pattern we can see that the situation Is still in favor of bears unless the previous support of $0.1959 won’t be retested because the potential reversal zone goes very close to this support however the formation of this pattern is also a hope that the price action may not break down the previous support.
Long Term Perspective:
As on 26th Oct 2019 I posted an article where I revealed that the price action of Basic attention token has formed a big bullish BAT pattern on long term week chart and at that time the price action was in potential reversal zone of this big bullish BAT:
Based on this pattern and some other bullish signals I predicted that the price action may hit the price level between: $0.28328 to $0.42727.
Then from Dec 2019 to Feb 2020 the price action started a bull rally and gained more than 110% value.
Here if we see the 0.786 Fibonacci projection of this pattern then it is at $0.42727 which is very close to its final resistance and at this time the priceline has already hit the 0.50 Fibonacci projection if the price action moves more up from here to breakout the 0.786 Fibonacci level then the Basic attention token will definitely breakout the final resistance as well to make all time high.
