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BAT/BTC Price Analysis: April 24 Drops Below 8000 Satoshis

At BITTABI, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our Apr 22 analysis of BAT/BTC*, we predicted that the price would decrease.  Our prediction was validated on Apr 23, when the price broke down from the support line we have defined below. To learn more, read out latest BAT/BTC analysis below. *1 satoshi = 0.00000001 bitcoin

On Apr 21, 2019, the price of BAT reached a high of 9400 satoshis. A gradual decrease. By Apr 23, lows of under 7000 satoshis had been reached.

BAT then initiated a slight upward move with. Highs of over 8000 satoshis were reached on Apr 23 and 24.

Price has since dropped to around 7600 satoshis.

BAT/BTC Prices: Apr 21- 24

Will BAT be able to rise to 10000 satoshis or will price continue dropping?

Let’s find out:

Basic Attention Token (BAT): Trends And Highlights For April 24, 2019

  • BAT/BTC reached a high of 9400 satoshis on Apr 21.
  • Basic Attention Token is trading inside a descending wedge.
  • The moving averages have made a bearish cross.
  • There is support near 7000 and resistance near 8200 satoshis.

Tracing the Current Trading Pattern

The price of BAT/BTC on Binance was analyzed at one-hour intervals from Apr 21 to Apr 24 to trace the current trading pattern.

On Apr 21, the price made a high of 9400 satoshis. Since then, it has been decreasing, creating several lower highs in the process.

Tracing these highs gives us a descending resistance line:

On Apr 21, the price reached a low of 7535 satoshis. Several market cycles have been completed and the price has made several lower lows.

Tracing these lows gives us a descending support line. The resistance and support lines combine to create a descending channel:

It is likely that the price will continue trading inside the confines of this channel until a decisive move occurs.

In order to figure out the direction of the move, we need to incorporate technical indicators into a longer time frame.

Technical Indicators

In this section, the price of BAT is analyzed at six-hour intervals from Apr 18 to Apr 24 alongside the 10- and 20-period moving averages.

Moving averages are tools used in technical analysis to smooth out price action. It is a lagging indicator since it is based on past prices. The relationship between short and long-term moving averages can help in identifying the beginning and end of a trend.
The 10- and 20-period moving averages (MA) are shown in the graph below:
On Apr 23, the 10-period MA crossed below the 20-period one. This is known as a bearish cross and often indicates that a downtrend has begun. The price is trading below both moving averages.

Furthermore, we can see that the past five candles have all had long upper wicks.

This indicates that there is significant selling pressure in the market.

The use of this indicator and the candlestick characteristics make it likely that the price will decrease towards the support line of the wedge. 

Future Movement

In this section, we incorporate support and resistance areas into the analysis to determine possible future price levels.

Support and resistance areas are created when the price reaches a certain level numerous times. They can act as a reversal area in case a breakdown or breakout occurs.
One support and one resistance area are shown in the graph below

The closest support area is found near 7000 satoshis. If the price decreases towards the support line of the wedge, it will eventually reach this area. We believe this to be likely.

The closest resistance area is found near 8200 satoshis. If the price breaks out of the wedge, it is likely to provide a reversal. We do not believe this to be likely.

Summary of Analysis

Based on our analysis, it is likely that the price of BAT will decrease towards the support line of the wedge. We believe it is likely that it will reach the support area outlined above. This means that price is mmore likely to drop toward 7000 satoshis than push back toward the highs we saw three days ago.

Do you think the price of BAT will reach the support line of the wedge? Let us know your thoughts in the comments below!

Interested in 2019, 2020, and 5 year Bitcoin price predictions? Click on the green button below:

LONG-TERM BTC/USD ANALYSIS

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

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Written by Ravi

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