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.
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.
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.
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.
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.