Is BAT About to Go Parabolic? Or Still Just Ranging?
It's time for an update on BAT! If you've been following my posts, you'll see that I somehow managed to perfectly time the beginning of the recent BAT surge. This was a purely technical breakout, and I'd been watching this one for a while.
So far, we've held above the blue triangle resistance fairly well, and we have closed our first weekly candle above it EVER! This is a very strong buy signal. I wouldn't be surprised if we broke out of the second triangle (in orange) and headed straight up towards 7000 and then onto 10000, which is a major long term resistance. That level is where BAT was initially dumped when it came on the market (you can see for yourself in this chart). From there, BAT would explore a new trading range and finally look bullish against Bitcoin.
If BAT breaks above 10000, it will likely go parabolic. BATBTC has been ranging for a very long time, but we recently made a higher low, and have closed a weekly candle above a MAJOR long term resistance. This is significant. Of course, this idea will be invalidated if we break back into the blue triangle. That wouldn't be good. For now, there's no reason to assume this will break back down there, so my bias is up.
I did enter a short term trade last week (bought near 3800 and sold at 5000), but I do anticipate this to go much higher. I'm diversified enough at the moment and am happy with my porfolio, so I may sit this one out, even if it does break out, but we'll see how I'm feeling : )
That said, the buy setup I'd be looking at is as follows:
BUY now, with a stop loss below the blue triangle
BUY upon the break of the orange triangle - currenly between 5500 and 5600.
TARGETS:
7000
10000
??????
This is not financial advice, and I'm not a professional. This is my hobby, and I love analyzing this market. This is for educational purposes only.
-Victor Cobra
So far, we've held above the blue triangle resistance fairly well, and we have closed our first weekly candle above it EVER! This is a very strong buy signal. I wouldn't be surprised if we broke out of the second triangle (in orange) and headed straight up towards 7000 and then onto 10000, which is a major long term resistance. That level is where BAT was initially dumped when it came on the market (you can see for yourself in this chart). From there, BAT would explore a new trading range and finally look bullish against Bitcoin.
If BAT breaks above 10000, it will likely go parabolic. BATBTC has been ranging for a very long time, but we recently made a higher low, and have closed a weekly candle above a MAJOR long term resistance. This is significant. Of course, this idea will be invalidated if we break back into the blue triangle. That wouldn't be good. For now, there's no reason to assume this will break back down there, so my bias is up.
I did enter a short term trade last week (bought near 3800 and sold at 5000), but I do anticipate this to go much higher. I'm diversified enough at the moment and am happy with my porfolio, so I may sit this one out, even if it does break out, but we'll see how I'm feeling : )
That said, the buy setup I'd be looking at is as follows:
BUY now, with a stop loss below the blue triangle
BUY upon the break of the orange triangle - currenly between 5500 and 5600.
TARGETS:
7000
10000
??????
This is not financial advice, and I'm not a professional. This is my hobby, and I love analyzing this market. This is for educational purposes only.
-Victor Cobra
Comment:
We'd ideally want to close this current weekly candle above the blue resistance as well. This is a ranging asset, so it's important to be very sure that we're about to see a major trend shift. As you can see though, we're clearly above the resistance on the weekly timeframe for the first time.
Comment:
Just touched the major long term resistance today. If we blast through, prepare for fireworks. If not, it will be a sign that the market as a whole may need to see another drop. It's crazy how TA driven this market is. There is no fundamental reason BAT should go parabolic here, but the charts indicate that it may.
