- Basic Attention has a bullish short-term trading bias and a negative medium-term bias
- The four-hour time frame shows that a bullish inverted head and shoulders pattern has formed
- The daily time frame shows that a bullish breakout from a falling wedge pattern is underway
Basic Attention is searching for direction on Thursday after the cryptocurrency posted gains of around 5% on the first trading day 2020.
On a year-to-date basis, the BAT/USD pair trades around 35% in the green, although the cryptocurrency finished 2019 with a modest loss of around 6 percent.
Technical analysis highlights that the path ahead for the cryptocurrency is still fairly uncertain, with the BAT/USD pair trading below its 200-day moving average, and remains technically bearish over the medium-term.
The BAT/USD pair would need to stage a rally of around 15% to reclaim its 200-day moving average.
At current levels, Basic Attention trades around 60% down from its 2019 price peak, and around 82% away from its all-time price high.
The four-hour time frame shows that the BAT/USD pair has now turned technically bullish over the short-term, which is encouraging.
A bullish inverted head and shoulders pattern is also in place across the lower time frames. The size of the pattern suggests that the BAT/USD could rally towards the $0.26 level if bulls can move price above the $0.20 level.
The daily time frame shows that a bullish wedge pattern breakout is in play, placing the BAT/USD pair’s 200-day moving average in focus around the $0.22 level.
The daily time frame clearly shows that once the BAT/USD pair starts to firm above its 200-day moving average, a rally towards major trendline resistance, around the $0.35 level remains possible.
Technical indicators are also turning bullish over the medium-term, with the Relative Strength Index now offering a solid buy signal.
BAT/USD H4 CHART Source: BAT/USD chart byTradingview.com
Upside Potential
The four-hour time frame shows that key technical resistance is now located at the $0.20 and $0.22.
Key technical resistance over the medium-term is located at the $0.26 and $0.35 levels.
BAT/USD Daily CHART Source: BAT/USD chart byTradingview.com
Downside Potential
The four-hour time frame is showing that the BAT/USD pair has strong long-term technical support around the $0.18 and $0.16 levels.
A reversal from current levels and sustained weakness under the $0.16 level will leave the BAT//USD pair exposed to additional losses towards the $0.14 level.
Summary
Basic Attention needs to stabilize above the $0.22 area in order to secure further medium-term trading gains.
Overall, a rally towards the $0.26 level appears achievable over the medium-term horizon.
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