The BitTorrent price has been in a strong bearish trend in the past few months. BTT is trading at $0.0000011, which is slightly above last week’s low of $0.0000010. The coin has even formed one of the most accurate bearish pattern. Its market cap has plummeted to $1 billion, making it the 56th biggest digital coin in the world.
BitTorrent is an old software platform that is widely known for downloading torrents from pirate websites like PirateBay. Justin Sun, the founder of Tron, acquired the platform in 2018 for just $180 million. This means that his input has had a positive impact on the network. BitTorrent transformed recently to become a blockchain platform for people to build decentralized applications.
According to the white paper, the BitTorrent Chain solves some of the most important challenges in the industry. For example, it solves the speed factor since it can transact over 7,000 transactions per second. It has a roots contracts layer, validator layer and the core. However, user adoption for the network has been a bit limited in the past few months.
The BitTorrent price has declined because of its affiliation with Tron. Investors are concerned about USDD, the newly launched stablecoin that has a close resemblance to Terra USD. As such, many investors are worried that the coin could have a similar ending if it loses its peg.
BitTorrent price prediction
On the 4H chart, we see that the BTT price has been in a strong bearish trend in the past few months. The sell-off accelerated last week amid the LUNA crash. Now, a closer look shows that the coin has formed a bearish pennant pattern that is shown in blue. In price action analysis, a pennant is one of the most accurate sell sign.
Therefore, with this pattern nearing its confluence level, there is a likelihood that the coin will have a major bearish breakout. If this happens, the next key level to watch will be at last week’s low at $0.000001. This view will become invalid if it moves above $0.0000011.
