Basic Attention Token: Pay Attention to These Demand Zones for Bullish Outlook
Warning: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
Bitcoin Dominance has declined slightly over the past three days from 44.04% to 43.05%. This means that altcoins have gained market share against Bitcoin. At the same time, Bitcoin saw a short-term rise above $40,000, which helped many altcoins rise over the past few days. The Basic Attention Token was one of them. Fibonacci extension levels showed that further upside may be imminent.
MTD-2H
Source: BAT/USDT on TradingView
On the charts, two areas of short-term interest are marked in cyan. The first is in the $0.85 region, which saw a bearish order block form in mid-February. For the past two days, the price has closed a session above this zone, breaking it.
However, the 61.8% extension level at $0.89 was not breached. Instead, it temporarily halted BAT’s bullish advance. Fibonacci levels were plotted based on BAT’s move from $0.56 to $0.766.
Typically, these moves extend to the 100% extension level, which in this case stands at $0.966. Below it, $0.949 also presented a horizontal resistance level.
The other area of short-term interest is the $0.82 demand zone, which has recently acted as support and may be tested once again.
Reasoning
Source: BAT/USDT on TradingView
On the RSI, a bearish divergence was observed a few days ago (in white dotted line) between the momentum and the price. However, the RSI remained above the neutral 50 to denote the presence of an uptrend.
Meanwhile, OBV has also trended higher over the past couple of weeks to show stable buying volume. CVD has also shown strong buying pressure in recent days.
Conclusion
Overall, the indicators showed strong bullish momentum and buying volume present behind the Basic Attention Token rally. The presence of a bearish divergence led to a pullback, but at the time of writing, the price seemed to be heading higher again. The 100% extension level at $0.966 presented a possible take profit target for long positions. At the same time, some caution might be advised as Bitcoin approached local resistance at $42,000 and could see rejection over the weekend.