BitTorrent (BTT) Hits Fresh Record Highs For No Apparent Reason—Dump Ahead?
Yerevan (CoinChapter.com) — BitTorrent, the token that backs the popular peer-to-peer file-sharing application of the same name, notched a fresh record peak on Thursday.
BTT/USD touched $0.0056 after climbing 10.99 percent intraday. The pair’s latest upside move surfaced as a continuation of a rally that started on March 29. Since then, its price had exploded by as much as 61.73 percent, pointing to a highly speculative buying mania in the BitTorrent market.
Speculative because the BTT rally came almost without any concrete underlying fundamental. One reason could be the recent decline in Bitcoin’s dominance against the altcoin market. When Bitcoin loses its market share, it reflects traders rotating out of their BTC positions to seek upside opportunities in its crypto rivals. BTT, for some unknown reasons, appealed to traders.
BTT futures on OKEx and FTX showed a dramatic spike in open interest. On March 17, the token had only $1.38 million worth of unsettled futures positions, a figure that climbed to $15.72 million on April 1. The BTT/USD exchange rate, in the same timespan, surged by roughly 250 percent.
BitTorrent (BTT) Futures Open Interest. Source: ByBt.com
The strike price data on BTT futures was not available at press time.
Poloniex Announcement
A relevant announcement that may have helped the BitTorrent token surge higher came from Poloniex. The crypto exchange announced on March 25 that a string of buyers, including BitTorrent backer Justin Sun, had acquired its operations. Meanwhile, it also introduced staking services for a range of tokens, which included BTT in addition to ATOM, TRX, WIN, and TEND.
#Staking on #Poloniex gives you a simplified way to earn rewards by depositing and holding assets in your account!
The speculation around the Poloniex acquisition by one of the BitTorrent backers may have led the BTT prices higher. Nevertheless, the scale of BTT profits was aggressively high, raising risks of extreme price speculations in the market.
What to Expect from BitTorrent Ahead?
Technically, BitTorrent is forming a bearish divergence, with its price forming higher highs and the relative strength indicator confirming higher lows. That indicates extreme speculation and potential bullish exhaustion in the BTT/USD market.
Should there by a downside correction, accompanied by stronger volumes on smaller timeframe charts, BTT/USD risks facing a market dump. Levels near $0.003 work as interim supports. A break below it could mean aggressive sell-offs towards confirmed previous support/resistance targets.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN.
Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
UNUS SED LEO, a cryptocurrency that describes itself as "the utility token at the heart of the iFinex ecosystem,"...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.