Looking at the Basic Attention Token chart, we can spot a major liquidity hunt event, an over-extended bear market and the result can be a massive bullish cycle in 2024.
Let's dive in...
On the first of January 2021 BATBTC hits a market bottom of 576 satoshis and produces a v shaped recovery.
In June 2023 BATBTC produces a market low of 573 satoshis... Now, based on Elliots law of alternation, since we have a fast (v shaped) recovery, the next time around we can have a slow (ending diagonal) recovery... This is what we are seeing here.
The action that is taking place from June 2023 through present day can be considered a stop-loss hunt event or the extension of the fifth wave of the bear market —a type of correction. In either case, what follows is a new bullish impulse, which means 5 waves up.
The low hit in the previous session at 510 satoshis is just a few sats away from the previous low six months ago. A new technical lower low would push prices towards 350 something sats, telling us that the current action is the market looking for liquidity rather than a new bearish impulse.
Once the long-term stop-loss are activated, once the trend-following bots are taken down, a new cycle can start... Which takes us to the good part, we are likely witnessing a bottom catch.