Basic Attention Token is attempting to recover short-term bullish momentum on Wednesday as the cryptocurrency probes back towards the August 25th swing-high. The BAT / USD pair has been a notable underperformer in the cryptocurrency space this year, and has suffered a tumultuous fall since peaking around the $0.500000 level in April.
At current trading levels, Basic Attention is down over sixty percent from its 2019 price peak, but the cryptocurrency has gained an encouraging thirty percent since the start of the year. Technical analysis shows that the cryptocurrency turned bearish during mid-July, after slipping back under its 200-day moving average.
The MACD indicator on the daily time frame suggests that the BAT/USD pair may fall back towards its yearly opening price, as a significant amount of negative divergence still exists. The bearish MACD price divergence was created during the strong move higher in early March 2019.
The four-hour time frame shows that a head and shoulders pattern is forming. If the bearish pattern is triggered, the overall downside projection of the pattern will override the bearish MACD divergence, which could mark a turning point for the cryptocurrency.