BAT/BTC: Ready, Aim.... Yesterday's volatility brought some reality into the markets. (We can't just go straight up forever?). Even with a 20% retracement we are in a healthy bull market and now is the time to start poking around the alt ratios and finding some deals. Well, take a look at the chart above for the BAT/BTC ratio. Everything indicator is telling me that BAT is about to run 2x versus BTC. The last few times BAT was this low against BTC we went about 2x and I don't see why today would be different.
BATUSDC
BAT/BTC: Something's Gotta GiveAs shown (predicted?) in one of my previous charts, BAT price against USDC appears to be stabilizing. However, the last few days and weeks BAT has been getting crushed against BTC and traders are no doubt feeling the pain emotionally and financially. "Should I dump BAT for BTC or ETH?" has crossed my own mind, so no doubt it's crossed yours. Should I FOMO from a consolidating asset into an overextended, overheated blue chip? Well, I guess when I put it that way it seems obvious, and looking at the ratio it appears BAT may be heading into oversold versus BTC. Take a look at the highlighted areas in Price, RSI, and MACD. This is not the best time to would flip BAT for BTC, in fact if anything I think these indicators are flashing a red hot stinking Sell BTC for BAT. With BTC appearing overheated we should see a rotation into alts like BAT, but the big question is whether the USD/USDC price will follow?
BAT/USDC: Consolidation then move up, price target $1.00+ by AugAs predicted, BAT has been consolidating against the USDC (Coinbase) for the last few days. The blue chip rally will likely continue into this week, but there is a sense that traders are likely taking profits on BTC and rotating into ALTs. BAT will likely be the beneficiary of the rotation as investors continue to buy up the coin with expectations of a return of at least 2x-3x in the next few months. Price is slowly trending toward $1.00 which could be realized by August. End of the year is anyone's guess, but if the rally continues it's conceivable BAT would end the year in the $2.00-$3.75 range strictly on a technical viewpoint.
$BAT Daily Chart - CoinbaseBAT has broke out of the $0.23 previous high very strongly.
It is now starting to pull back after reaching a high near $0.31.
A great buying opportunity would be at around the $0.23 area. This area is a VERY strong support level since it coincides with the following:
1) Previous breakout level (which now turns into support).
2) The uptrend support (if it dips there before 7-April-2019).
3) The 61.8% Fibonacci level.
I expect this support level to hold. As always, a stop loss shall be placed. The stop loss should be at $0.215 (<7%).
Basic Attention Token (BAT) Buying PointsFor people that believe in BAT and would like to hold it for the long term, I recommend buying from the following points based on the Fibonacci analysis and the current uptrend.
1) Buy If it breaks $0.23
2) Buy if it pulls back towards the uptrend, which is currently at $0.18 but will rise with time. Of course, it would be best to buy at a point where the uptrend and a fib level intersect but this is not guaranteed to happen.
Stop loss for scenario 1 would be $0.215 (>7% loss).
Stop loss for scenario 2 would be $0.163 (>10% loss if bought around $0.18).