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.
The strike price data on BTT futures was not available at press time.
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.
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.