Los Angeles (CoinChapter) – Earlier this month, the price of BitTorrent — the token that backs the popular peer-to-peer file-sharing application of the same name — reached a record high.
The rally came out of nowhere and appeared to lack a concrete underlying fundamental. One possible reason for the surge could be the recent decline in Bitcoin’s dominance against the altcoin market.
BitTorrent has continued to hold critical bullish support following its partnership with Coldstack. At press time, it was trading at 0.006887, which marked a 1.53% increase from the previous day.
Technicals show the BitTorrent price has formed a descending triangle pattern. In an uptrend, the formation of a descending triangle indicates a bullish continuation.
BitTorrent descending triangle pattern. Source: TradingView.com
Many assets typically trend upward after breaking out of the triangle range. The bullish target for such a pattern is equivalent to the maximum height of the triangle.
For BitTorrent, the maximum distance between the upper and lower trendline is $1. Therefore, the upside target is roughly $1 above the level of breakout.
BitTorrent utilizes the BTT token, allowing for the tokenizing of one of the largest decentralized file storage systems, BTFS. The token powers BitTorrent Speed, BitTorrent File System, DLive, and other currently unreleased programs.
BTFS is one of the first decentralized file storage systems and provides a foundational platform for decentralized apps. It is both a protocol and network implementation, supported by millions of BitTorrent user nodes.
BitTorrent among cryptos performing well in 2021
BitTorrent is one of many cryptocurrencies that achieved record highs this year. The most notable one, of course, is Bitcoin.
The leading cryptocurrency opened the year at a price of just under $30,000. It is now nearly double that as the month of April comes to a close.
Bitcoin recently fell below $50,000 for the first time in over a month, but has since crossed the threshold again. It was trading at just over $53,000 early Monday morning. BTC just a couple weeks ago was changing hands for $64,895.
Like with BitTorrent, there are reasons to believe Bitcoin will continue its bullish run as well. Macroeconomic investors have purchased $14.4 billion worth of inflation-protected treasuries (ILBs) to date.
ILBs are adjusted to inflation so that the principal and interest payments rise and fall with the rate of inflation. This signals the markets are heavily skewed toward a spike in inflation.
Bitcoin and other digital assets are appealing to investors for their scarcity. They serve as a hedge against inflation, which is why many companies and banking institutions are warming up to them.