Crypto News

BitTorrent’s BTT token looking to break out from ‘Bollinger Squeeze’

BitTorrent (BTT) Hits Fresh Record Highs For No Apparent Reason—Dump Ahead?
BitTorrent (BTT) Hits Fresh Record Highs For No Apparent Reason—Dump Ahead?

Jaipur (CoinChapter.com) — BitTorrent’s BTT token has been trading in a downtrend since the beginning of April this year.

While bulls did their best to start recoveries at numerous points, BTT’s overall market mood has been bearish since the last two months. But with the current technical setup, things are beginning to look bullish for the cryptocurrency token.

Classic Bollinger Band Squeeze Formation

On the daily BTT/USDT price chart, the pair is currently trading in a sideways fashion. A close examination of the setup reveals an entry into the classic Bollinger Band squeeze pattern formation. American financial author, analyst, and trader John Bollinger propounded the indicator for technical analysis.

For folks who are not aware of this technical setup, a squeezed Bollinger Bands formation indicates the tendency of an asset to breakout either to higher prices or lower levels.

Bollinger Bands Squeeze Formation Beginning On BTT/USDT Daily Chart, Source: BTTUSDT on TradingView.com
Bollinger Bands Squeeze Formation Beginning On BTT/USDT Daily Chart, Source: BTTUSDT on TradingView.com

While the squeeze pattern formation is beginning on the 1D chart, the BTT/USDT pair is already within squeezed Bollinger Bands on the 4 hours chart.

BTT/USDT Trading In Bollinger Bands Squeeze Formation In 4h Chart, Source: BTTUSDT on TradingView.com
BTT/USDT Trading In Bollinger Bands Squeeze Formation In 4h Chart, Source: BTTUSDT on TradingView.com

As we mentioned earlier, this points to a clear signal of a breakout in either direction. But will the breakout be a rally or a drawdown?

RSI And MACD Bottomed With No Major Sell Volumes

Squeezed Bollinger Bands assert breakouts. But bottoming RSI (Relative Strength Indicator) and MACD (Moving Average Convergence Divergence) indicators point towards upside price action. They imply that an asset is way too oversold.

For the BTT/USDT, sell volumes are almost non-existent on the daily chart. This shows that the pair is in an accumulation phase. Also, RSI and MACD indicators have bottomed around 40 and -0.001, respectively, indicating that an upsurge is round the corner.

Read More: BitTorrent (BTT) in a Super Bullish Continuation Setup; Here’s Why?

BTT, BitTorrent’s BTT token looking to break out from ‘Bollinger Squeeze’
Sell Volumes On 1D BTT/USDT Chart Practically Nil, Source: BTTUSDT on TradingView.com

The 20-day exponential moving average (EMA) indicator points to a near-term resistance around $0.0037. If the BTT/USDT trading pair successfully taps the said resistance, then a rally to $0.005 is possible (100 MA). On the other hand, if bulls keep moving forward, then a $0.056 price level test could also happen.

On the flipside, a negative breakout could push prices down to the $0.0028 support.

Read More: BitTorrent (BTT) Recovers But Bearish Risks Persist; Here’s Why

Fundamentally, BitTorrent and the BTT token have achieved some significant milestones. An increasing number of cryptocurrency exchanges have extended trading support for the BTT token. Plus the company released BTFScan V1.2.1. This latest BTFscan version shows the stored amount of the whole network on a longer timeframe. Users too can switch time periods freely.

Also according to the company’s official Twitter feed, BitTorrent Speed will soon announce an upcoming integration with one of the largest decentralized exchange platforms in the world, in the next few weeks.

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Himadri Saha

Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.

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