BitTorrent’s BTT looks at imminent dip post 25% rally into overbought territory

BitTorrent's BTT looks at imminent dip post 25% rally into overbought territory
“Going Down (B+W)” by w4nd3rl0st (InspiredinDesMoines) is licensed under CC BY-NC-ND 2.0
  • 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.

BitTorrent retests its May 21 resistance target for a potential bullish breakout
BitTorrent retests its May 21 resistance target for a potential bullish breakout. Source: BTTUSD on TradingView.com

Related: BTT is among the most profitable tokens in Tron ecosystem, with 654% YTD profits

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.

Mines filed on BitTorrent in an uptrend since May 2021
Source: ScanBT

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 active miners on the rise since May 2021
Source: ScanBT

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.

BitTorrent's BTT risks trimming much more gains. Source: BTTUSDT on TradingView.com
BitTorrent’s BTT risks trimming much more gains. Source: BTTUSDT on TradingView.com

Related: A 45-50% BitTorrent bust building as BTT carries on in the descending channel.

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.

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