Yerevan (CoinChapter.com) — BitTorrent bulls should look for cover as bears drop one bomb after another over its native token BTT to destroy its market value.
It all started on April 5, after the BTT/USD exchange rate topped out at $0.013, following a 4,456% upside boom year-to-date. The pair was lucrative enough to traders that wanted to withdraw their short-term, super-high profits. As a result, bids for BTT/USD went down and kept going down unless it reached $0.002 on June 21, which is today.
That’s it. The BitTorrent token crashed by more than 82% following its 4,456% price rally, wiping almost all the gains it had made in 2021 until April 5. Now, it has left its hardcore holders in deep losses. And should they decide to hold BTT further, one cannot predict how long it would take them to recover their investments entirely.
Part of the reason is a prevailing bearish sentiment all across the crypto markets. Tokens like BitTorrent, Ethereum, Litecoin, Cardano, and others primarily tail Bitcoin (BTC) trends. Therefore, a spike in BTC/USD bids typically leads to a jump across altcoin markets. Similarly, when BTC/USD falls, it normally takes down the entire crypto market lower with it.
BitTorrent needs bullish peers
BitTorrent fell by 19% even on Monday, just as Bitcoin reported a similar decline but with dwarfed intraday losses of 9%. But where would BTT/USD head next is now the matter of key technical indicators? Here is what the setup looks like now.
The BTT/USD exchange rate reached its three-month low of $0.002 before rebounding slightly higher. The support level looks weak enough in front of the prevailing bearish correction bias. That said, the BitTorrent token can break below the price floor to target the basement level of $0.0019. The downside target also coincides with the lower trendline of the descending channel range.
The dip would also push BTT/USD’s relative strength index (or RSI) below 30. Traders consider the area below 30 as oversold. They treat it as their cue to raise their bids for the concerned asset. A rebound happens and creates short-term upside opportunities for bulls.
That said, traders with a bullish outlook could wait until the BitTorrent token crashed to $0.0019 before entering the market again. A rebound would take BTT/USD Towards the current support level of $0.002. And, if the bullish momentum sustains, the pair would retest the upper trendline of the descending channel pattern as its upside target.
That’s all, folks! Trade wisely.