The BAT has been taking hits non-stop ever since May 9th. But this week has been extra cruel to the coin, making it suffer nearly 4% in losses. Due to such quick drops over a small amount of time, the overall sentiment for the coin is going to be bearish.
Usually, we don’t say the reasons as to why a coin has decreased on a fundamental analysis point of view.
But for BAT it is extremely obvious. The rumours about the Facebook coin being confirmed means that the BAT will have to face some serious challenge in the upcoming months, combatting the media giant for crypto digital ad dominance.
That’s why it is expected that the coin will fall to at least $0.2 by the time Facebook coin officially comes out. And will most likely stay there until the end of the year.
When it comes to short term, all the CFD traders out there should be ecstatic about opening sell positions on the BAT as it’s pretty much guaranteed to slide into the negative. I think this is the first time that CFDs outclassed real cryptos in a trading sense.
However, those same CFD traders might need to find their inner patience to wait for the coin to actually start falling. The sideways trend is sure to hold up until the end of the month due to the coin floating between the $0.34 and $0.4 levels.
A clear indication for all the traders would be when BAT breaks the $0.28 mark. That’s when most of the shredding will start and continue until the end of the year.
BAT was unfortunate to be in the same basket as the Facebook coin. It will probably be the only coin, not directly affected by the Bitcoin bull in the future.