The new cryptocurrency BitTorrent (BTT) and its potential.
The bulls are returning to the crypto market, and the BitTorrent token is benefiting from it. Here is an analysis of BTT.
Bitcoin is trying to wrap up recent losses. Ethereum is already on the verge of achieving it. Meanwhile the BitTorrent token (BTT) far outperforms the largest, gaining nearly 60% from the low reached last Saturday.
At the time of writing, the BTT token is trading at $0.0038, accumulating a gain of 21.50% in the last 24 hours. Its market capitalization is $3,841 million, thus ranking 42nd in the Crypto Online ranking.
To put us in context, BitTorrent is a peer-to-peer file sharing platform, with a network design that has become increasingly decentralized in recent years.
This platform has been online since 2001, but it was not until 2018 that it began to navigate the world of blockchain and cryptocurrencies, when the TRON blockchain acquired BitTorrent.
BTT is a utility token within this P2P file sharing platform, and it was launched within the TRON network. Its main utility is to speed up the download speed with BitTorrent Speed.
The reason behind the latest spike
The catalyst for the recent price increase was the announcement of the launch of a native network for the platform, which will be called BitTorrent Chain and which will be the main home of the BTT token.
With this will come a redenomination of the current BTT tokens, which will be exchanged for a new one in a ratio of 1:1000, while maintaining the current market capitalization. This means that the total supply of BTT will increase to 990,000,000,000,000.
This launch is expected to take place on December 12, which has been generating a rebound in bullish expectations around this cryptocurrency.
BitTorrent token technical analysis
We see from the daily chart how the token has regained its short-term uptrend, after going through resistance after resistance without much difficulty.
The large engulfing force to the upside tells us that the gains are highly likely to extend further in the near term.
However, today we are seeing the price being slightly hampered by resistance at $0.0038. A small correction is likely to occur in the next few hours, before resuming the path to the upside.
As long as the support at $0.0024 holds, there is no reason to think about relevant selling.
BitTorrent token daily chart technical analysis. Source: TradingView .
BTT vs USDT weekly chart
From this time frame we can make a more complete forecast. We see that the recent gains of the BitTorrent token are not yet a decisive signal, but they may be the beginning of an important movement.
While a large retracement of the long-term trend occurs, the price has been locked in a pennant. This chart figure usually indicates a break in a trend for its subsequent continuation.
If BTT manages to break through the resistance at $0.0040, it would be a good first sign that the long-term trend is resuming. The more conservative would expect the resistance at $0.0050 to be breached. When this occurs, the all-time high could be visited. It would not even be unreasonable to expect new price records.
As I mentioned, there is no reason to think about short-term selling as long as the support at $0.0024 holds. Even being broken through, the bulls could still be hopeful, as the truly relevant support is found at $0.0018.