Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Bitcoin dominance has fallen slightly in the past three days, from 44.04% to 43.05%. This meant that altcoins have gained some market share compared to Bitcoin. At the same time, Bitcoin saw a rise of more than $40k in the near term, helping with the bullishness of the past few days for many altcoins. Basic Attention Token was one of them. Fibonacci expansion levels showed that further upside potential may be just around the corner.
Two short-term focus areas are highlighted in cyan on the charts. The first is in the $0.85 region, which has seen a bearish order block in mid-February. In recent days, the price has closed a session above this area, breaking it.
However, the renewal level of 61.8% at $0.89 has not been broken. Instead, it temporarily halted BAT’s bullish advance. The Fibonacci levels were plotted based on BAT’s move from $0.56 to $0.766.
In general, these moves extend to the 100% expansion level, which in this case is at $0.966. Below that, $0.949 also presented a horizontal level of resistance.
The other area of interest in the near term is the $0.82 demand area, which has acted as a support recently and could be tested again.
A bearish divergence (white striped) was observed on the RSI a few days ago between the momentum and the price. However, the RSI remained above the neutral 50, indicating the presence of a bullish trend.
In addition, the OBV has also been on an upward trend over the past two weeks to show stable buying volume. CVD has also shown high buying pressure in recent days.
Overall, the indicators showed strong bullish momentum and buying volume that has been present behind the Basic Attention Token rally. The presence of a bearish divergence caused a pullback, but at the time of writing, the price appeared to be moving back up. The 100% extension level at $0.966 offered a potential profit target for long positions. At the same time, some caution may be warranted as Bitcoin approached local resistance at $42k and could see a rejection over the weekend.