On Monday, BitTorrent’s price rose by 164%, which is shockingly overvalued.
After rising for seven consecutive days, the BTT/USD exchange rate surged to $0.013, a record high. Each sell-off attempt produced the same positive accumulation, prompting more and more traders to purchase assets backed by Justin Sun at intraday highs. The volume also soared.
The strong uptrend pushed BitTorrent’s relative strength indicator to 94.95, and the reading indicated that the asset was extremely overbought. Usually, a higher RSI reading will prompt investors/traders to close the stock. When they make a profit, their assets peak and fall to a lower level to find the next local support. In the worst case, it will just crash.
It is not easy to estimate what will happen to BTT/USD. Many analysts believe that the rebound of BitTorrent tokens surfaced without any specific catalyst.
But independent cryptocurrency analyst Joseph Young (Joseph Young) tip Justin Sun, along with other partners, acquired the Poloniex cryptocurrency exchange and subsequently introduced BTT shares on the platform, which may push up the price of BTT. Mr. Sun supports BitTorrent through his main business, Tron Foundation. The Tron blockchain supports BTT.
Mortgage stops the active supply of tokens from circulating. If the demand for related cryptocurrencies increases, it tends to increase bids in the entire spot market.Previously, Ethereum’s local token, Ether, also soared Double opposition to similar catalysts.
But BitTorrent is not Ethereum. The project supports more than 80% of the alternative cryptocurrency space above its blockchain, including Decentralized exchange UniSwap with Tether’s stablecoin USDT. This caused traders to conflict on the next direction of BTT.
Mr. Young also asserted that BitTorrent’s price increase “has no clear basic catalyst.”
BitTorrent price outlook
The biggest risk for BitTorrent going forward seems to be down.
Traders may unload some BTT holdings to ensure maximum profit. This may push the token to the next downside target lurking near its 20-4H exponential moving average (green wave). If profit-taking intensifies, BTT will fall to the blue wave target -50-4H simple moving average. This will wipe out almost most of BTT’s profits in 2021.
At the same time, the continuous pumping phase may cause BTT to fall into a bubble, which may cause the most damage to the newest buyer. Currently, the token needs a lot of downhill corrections to offset its overbought sentiment.
Photo by Felipe Souza on Unsplash.