- BTT/USDT exchange rate spiked by 25% into overbought territory
- Rally backed by expanding BitTorrent miner network and BTFS adoption
- BTT looks forward to a drop to the bottom of the ascending channel pattern
JAIPUR (Coinchapter.com) – BitTorrent (BTT) rose 25% jump in the last 24 hours, after waking up from its sideways price action around $0.00386 and eventually rally to $0.00495.
In detail, the BTT/USD exchange rate earlier traded inside an Ascending Channel. However, Wednesday’s upside move had the BitTorrent token retest the Channel’s upper trendline around $0.0045 for a potential breakout. Later, the bullish rally exhausted itself, only to resume Thursday morning with another 11% pump, hitting $0.00495.
As a result, BTT reclaimed the multi-month resistance level of $0.0049 from May 21, as shown below.
What Fundamentals Fuelled BTT’s Pump?
Bullish BTT speculators picked up on a flurry of optimistic fundamentals to strengthen their upside bias on BitTorrent token.
First, the BitTorrent data tracking service ScanBT reported a gradual spike in the total number of mined files since May 2021. The metric posted 9% growth from 2.361 PiB to 2.597 PiB in the last three months.
Along with the above, the total number of miners participating in the BitTorrent ecosystem too registered a 38.5% uptick. Active miner count went up from 904,319 recorded on May 14, 2021, to 1,469,505 (almost 1.5 million) as of Wednesday.
BitTorrent’s mining landscape has achieved significant decentralization, with Germany, the US, and Japan capturing the lion’s share on the network.
After The Rally, Time For A Drop
The BTT/USDT exchange rate’s explosive upside move beyond the ascending channel setup caused its relative strength index (RSI) reading to also inflate beyond the usual 30-70 range. As a result, Thursday opened with the RSI clocking 77, which in turn invited bears to assume control of BTT’s momentum.
Prices dropped 11% as a result. If the selloff refuses to dial down, BitTorrent’s native token risks falling below $00.43. Beyond the said price, the bear flag channel bottom at $0.00385 awaits.
If BTT spot rates hold above the 50-week moving average (MA) wave, the overall trend will remain bullish. Conversely, a break below the 50-MA will unleash bears left, right, and center.