Basic Attention Token (BAT) had been doing really well lately.
At the start of the year, it was trading around $0.25, and then just started to skyrocket, reaching an all-time high (ATH) of over $1.64 earlier this month.
Looking at BAT’s performance on MarketMilk™, it’s up over 420% over the past 3 months and a ridiculous 695% over the past 12 months!
For a while, it looked like BAT would just keep going up. But just like the rest of the cryptos, its price was negatively by bitcoin’s flash crash over the weekend.I wrote about this in an earlier post and recommend checking it out if you missed it.
The selling pressure on BAT looks to have finally subsided which provides an opportunity to buy the dip.
If you’re wondering, BAT is not Batman’s bitcoin. So if you knew that and you’re already familiar with BAT, you can skip the next section.
WTF is BAT?
Basic Attention Token, or BAT, is the token that is part of Brave, a blockchain-based digital advertising platform, designed to fairly reward internet users for their attention.
Using Brave’s free web browser, you can choose to replace the ads you see with ads on Brave’s ad network.
The Basic Attention Token (BAT) is the unit of reward in the digital ad platform and is exchanged between advertisers, publishers, and users.
Advertisers pay for their ad campaigns in BAT. Users then receive BAT from advertisers as a reward for their attention.
The novel concept behind Brave is that instead of supporting websites by viewing their banner ads, you can pay the websites directly through your (Brave) browser.
Brave will keep track of how much time you spend on each website. Then Brave will divide up your BAT and pay websites each month based on how much time you spent using them.
Instead of making a bunch of small individual contributions to the dozens of websites that you visit each month, just make sure that you have some BAT, and Brave takes care of the rest.
The Brave-verified websites you visit will receive your contributions automatically, based on your attention as measured by Brave.
Brave also has a “tipping” feature. You’re able to automatically tip a set amount to a website each month, or give one-time tips in an amount of your choice.
BAT is seen as one of the most successful altcoin projects to date. Since its integration into the Brave browser’s global private ad platform, there are now over 29 million monthly active users, 9.8 million daily active users, and 1 million verified publishers/creators accepting BAT. 🙌
They are even building Brave Search, a new privacy-focused search engine. Brave Search will be an “independent, user-first, and private search engine.”
By integrating Brave Search into its Brave browser, Brave will provide an alternative to Big Tech browsers (Google Chrome, Apple Safari, Microsoft Edge) AND search engines (Google and Bing).
BAT Technical Analysis
On the daily chart, we can clearly see that BAT is in a strong uptrend given that the price is trading above both its 50 SMA (purple line) and 200 SMA (blue line).
As shown by the white dashed lines, we can also see that BAT is now trading in a range between 1.25 and 1.60.
Notice how 1.25 acted as a previous resistance level. The price tested the area twice in March only to be rejected.
After a couple of more attempts, the price was finally able to break through earlier this month.
The next resistance level became 1.60. Notice the multiple attempts made by price to test this area only to be met with selling pressure.
When the flash crash occurred over the weekend, the price plummeted but support at 1.25 seems to be holding.
If you look at the yellow rectangle, notice the long lower shadows (or wicks). It shows that whenever the price fell below 1.25, buyers were stepping in.
This support area has been tested for four straight days and it’s held! Sellers (bears) keep trying to push the price down during the day but the buyers (bulls) are not quitting putting up a good defense.
Even though BAT would fall below 1.25, it’s managed to able to close above 1.25 so far.
You can also see that the size of the candles is decreasing in size. This means that volatility is calming down and the fight between buyers and sellers is running out of energy.
So the question is who is going to give up first? The buyers or the sellers?
Obviously, since I’m looking to buy the dip, I look for the sellers to become exhausted first.
Here’s my trade idea.
Buy BATUSD at 1.25.
But if the price closes below the 50 SMA (purple line), cut your loss.
The 50 SMA should hold as final support so if it doesn’t, it means I was wrong and that sellers were able to finally overwhelm the buyers. But at least I’ll know quickly if I’m wrong and the loss will be small.
Take profit at 1.60 if you think the range will hold.
If your hands more like the diamond type or think BAT is headed to the moon, don’t take profit but move your stop to breakeven and let it ride. 🚀