Basic Attention/USD Technical Analysis

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• 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.

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.                                                                                   

 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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