- BAT Token retraced by an overall 14% from the swing high of $0.90
- The press time price of BAT/USDT is $0.80 established on the back of a 0.07% decline in the past 24 hours
- The macro price action of BAT Token is wrapped inside the ascending broadening wedge since the crash of July
BAT Token posied to retrace down to $0.71
BAT Token’s price began its retracement after smashing a swing high of $0.90 and is currently re-inspecting the support of $0.80. This particular level can be considered as a reliable support cushion provided that the price action maintains its dignity inside the ascending broadening wedge pattern.
A violation of the established support trend line of July 21st will be immediately accompanied by fallout of 12%. This marks a re-inspection of the $0.71 support cushion which is also bolstered by an impending crossover between two critical Exponential Moving Averages.
The Daily Relative Strength Index is attempting to cool down after being a victim of bearish divergence for three consecutive weeks.
BAT Token Price Action displays H&S on the 4-Hour Chart
The 4-hour chart of BAT Token adds credibility to the bearish outlook. As the broader cryptocurrency markets have tumbled, the BAT price picked up its bearish trend before hitting the psychological barrier of $0.92,
This retracement led to the price action formulating a bearish H&S pattern on the 4-hour chart. Even though the current price trend of BAT is sustaining well above the macro support trend line, investors shouldn’t rule down the possibility of a minor 12% drop. A breach of this line will lead to the price getting exposed to the support of $0.71, which is when the price will complete the right shoulder of the bearish H&S pattern.
On the upside, if BAT Token price manages to bounce off from the macro trend line, it will be the end of the bearish perspective. The occurrence of this scenario will invalidate the bearish outlook and allow buyers to take a swing at the local top of $0.90.
SUPPORT : $0.71
RESISTANCE : $0.90