- BitTorrent influenced by the descending channel formation.
- Looming death cross between the SMA-50 and the SMA-200.
- Positive correlation with Bitcoin might lead to a bearish continuation.
YEREVAN (CoinChapter.com) – BitTorrent (BTT), a utility token launched on the Tron blockchain in 2019, could eye further losses and crash another 30 percent. The bearish prediction estimates the price at approximately $0.0015, or 40 percent lower than the current value of $0.0025 in the European session Friday. The assumption is based on 3 factors influencing BTT.
#1 BitTorrent’s descending channel formation
BitTorrent traded in a descending channel pattern since early April. The parallel trendlines of the channel halted attempts for breakouts and prevented plunges. The token retested the upper trendline on July 1 and corrected downward, unable to break the resistance.
The descending channel does not have a pronounced continuation bias. Therefore, BTT could exit the range in either direction. However, as long as the token remains within the formation, it could crash back to the channel’s support line. In which case, the price could fall as low as the $0.0015 margin estimated above. However, before reaching the lower trendline, it will retest a significant support bar at $0.0019.
The descending channel formation is not the only bearish predictor on the BTT charts.
#2 Looming death cross on the BTT chart
The BitTorrent daily chart is drawing a death cross in the upcoming sessions.
The indicator occurs when a short-term moving average crosses down below a long-term moving average. For example, on the BTT chart, the 50-day simple moving average (SMA-50: blue wave) sloped alarmingly close to the 200-day SMA (red wave). As a result, it predicts a bearish period unless the short-term MA restores to the previous position above the long-term MA.
If the token gains in price and shifts the trajectory of the SMA-50, it could avoid the death cross. However, as of the current chart, that scenario does not seem plausible.
#3 Bitcoin bearish correction
BitTorrent is in a positive correlation with Bitcoin (BTC), as confirmed by the chart fluctuations. For example, when the alpha crypto lost 36 percent of its value in May12-19, BitTorrent followed, shedding 49 percent. Similarly, when Bitcoin declined by 22 percent from the June 15 value of $40,487 down to $31,640 on June 21, BTT went down with the ship. The token lost 43 percent in the same period, sliding down to $0.0020.
In the Friday session, the flagship cryptocurrency still consolidated around the $33,660 price margin. Given Bitcoin’s overall bearish bias, the similar channel formation on the daily chart, and the correlation between the two tokens, BTT is likely to follow the larger crypto and adopt a bearish momentum.
The reasons listed above point in a bearish direction for BitTorrent in the upcoming sessions. BTT/USD exchange rate stood at $0.0025 in the London session Friday, expecting more losses ahead, up to 40 percent.