A 45-50% BitTorrent bust building as BTT carries on in descending channel

BTT, A 45-50% BitTorrent bust building as BTT carries on in descending channel
Image by Peter Fischer from Pixabay
  • BTT down by 40% this month
  • The price approaches the trendline resistance
  • Market watchers on their toes ahead of MA crosses

YEREVAN (CoinChapter.com) — BitTorrent (BTT) continues moving along the upper band of a bearish flag. A massive plunge appears to be looming following a death cross formation on BTT charts. Traders typically perceive the 50-200 MA crossover as a sign to increase their bearish positions.

The BitTorrent cryptocurrency is trading at $0.002, a 40% decline in the last month. The market shows no signs of turning bullish anytime soon as it toggles downward the upper band of the descending channel. 

The technical indicators are bearish

This kind of downward movement was predictable after the death cross of 50&200-day MA in mid-July and the 50&100-day MA crosses a month earlier. 

The BTT descending channel continues following major death crosses. Source: TradingView.com
The descending channel continues following major death crosses. Source: TradingView.com

The 14-day relative strength index (RSI) broke the lower threshold yesterday at 28.02 only to revert in a day. The RSI returning to the baseline shows that the asset will continue moving in the direction it has taken. 

The Pivot Points suggest that the current support level is at $0.0015. If BTT breaks the support, a new low may form 90% lower than the current level. Therefore, the price level fluctuating at this support level and decreasing by 45-50% is a more conservative forecast for the upcoming weeks. 

Otherwise, If the price movement turns upward to cross the $0.003 line, a resistance will form at $0.004. Thus, while future developments are still questionable, the technical analysis signals a mostly pessimistic position.

Related: 3 reasons why BitTorrent beams at a 25% BTT breakdown ahead

What’s behind the BTT decline?

Cryptocurrencies, in general, haven’t had the best week. With Bitcoin at a 4.2% weekly decline, Ethereum at 8.4%, and Ripple at 11%, almost all other major cryptos have followed suit. Nonetheless, the downtrend of the BitTorrent coin price is present even concerning BTC. 

The fundamentals of BitTorrent Inc. are nowhere near replicating the digital asset market sentiment. According to CoinTimes, the latest “Global Internet Phenomena” report marked BitTorrent as one of the leaders in global video-streaming during the pandemic. 

It covered 3.3% of global traffic and even surpassed Netflix in the EMEA region. However, governments have been lifting COVID-19 restrictions, and the video-sharing network may be suffering from recovery. 

Nevertheless, with the Delta variant of the virus spreading rapidly, the relevance of BTT’s underlying company may restore. As the BTT price approaches the upper resistance trendline, a breakout may occur. If that happens, the price will probably move upwards sharply.

Related: Virus worries waves through crypto markets as Bitcoin busts below $30K

The setup shows that it is the right time for investors to sell bets in the short term. However, these strategies are most effective with less volatile assets with fairly predictable price ranges.

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