BitTorrent (BTT) Lost More Than Half Its Value in Less Than Two Months

BitTorrent, BitTorrent (BTT) Lost More Than Half Its Value in Less Than Two Months
Image by Mirko Kaminski from Pixabay 

Goris (CoinChapter.com) — Those who bought BitTorrent’s BTT token at its year-to-date high now face the prospect of waiting too long to see their investment turn up profits.

It is because the BTT/USD exchange rate is now down more than 60 percent from its record peak of $0.013, achieved in the first week of April. As of Monday, the pair was trading for as low as $0.005. Meanwhile, in late April, it was down at $0.0042.

So it appears, the BitTorrent token became the victim of aggressive profit-taking, especially after its supersonic rally at the beginning of this year. Before correcting lower, BTT/USDT had rallied by as much as 4,627 percent on a year-to-date timeframe. The upside gains were more than adequate to cash-out. So it did.

Read more: Altcoins in Focus on 11/05/2021: Reef, Cardano, Holo, BitTorrent, Wink

But the biggest challenge for BitTorrent did not come from sellers in its market. It instead came from the pumped-up demand from rival tokens, including Dogecoin, a meme cryptocurrency that rose to global fame after billionaire entrepreneur Elon Musk openly proclaimed himself as its fan. The same sentiment led to a drop in the Bitcoin prices, albeit their downside scope appeared limited.

Mid-cap tokens like BTT have now entered an overlong downside consolidation phase. They now test support levels that were resistances during their uptrend. BTT/USDT — in particular — hints at logging extended losses as it feels weaker in the absence of concrete fundamentals.

BitTorrent in Falling Wedge

BitTorrent now tests the lower trendline of a structure that constitutes a Falling Wedge pattern. In retrospect, Falling Wedges are bullish reversal signals which appear when prices fall within a range defined by two falling contracting trendlines. These trendline eventually converge at an apex. Meanwhile, the price attempts to break out of the range to the upside to target a bullish level that is situated as high as the maximum Wedge height.

BitTorrent trends lower inside a Falling Wedge. Source: BTTUSDT on TradingView.com
BitTorrent trends lower inside a Falling Wedge. Source: BTTUSDT on TradingView.com

That said, BTT/USD expects to bounce higher from the lower trendline to initially target the upper trendline, which coincides with the 0.328 Fib line at $0.007. If the price continues breaking upward, then trades could enter a long entry towards $0.00765, $0.0082, and so on.

Conversely, a break below risks invalidating the bullish structure. Then, the price can fall to as low as the 200-day moving average (the orange wave in the chart above).

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