The BitTorrent price has broken below an important support level, which could mark the start of a much deeper decline for BTT.
BitTorrent is last trading at $0.00296, down 2.63% in the last 24 hours, and -12.35% in the last 7 days.
BTT, the native token of the popular BitTorrent file sharing platform, has lost 77% from its 4th of April $0.0129 high. Furthermore, it could be in danger of adding to that number unless it recovers its 2021 uptrend.
BTT is facing the same problems as most cryptocurrencies. After such an impressive run at the start of the year, a sharp correction was inevitable.
BitTorrent opened trading on the 1st of January at $0.00029. By early April it its value had increased by an incredible 4,400% to $0.0134.
I can find no reason why BTT was suddenly worth 40x more in April than in January. The logical conclusion is that following the rise of Bitcoin and Ethereum towards the end of last year, retail traders indiscriminately FOMO’d into every asset with a low starting price.
This is evident in the magnitude of price appreciation across altcoins.
So what happens now? Should the BitTorrent price be closer to January’s or April’s valuation?
BTT technical outlook
The 4-hour chart shows BTT has broken below a rising trend line from February. As long as the price remains below the trend at $0.00300, the bias will be negative.
The next major support can be found around 30% lower at $0.00199. Furthermore, it’s possible that a deeper decline could push the BitTorrent price to the start of the uptrend at $0.000106.
Although, this is unlikely to happen unless the whole crypto market breaks down.
If BTT reclaims the supportive trend line at $0.0030, it will relieve the immediate downside pressure. However, a bullish signal will not arrive until the price clears the horizontal resistance of $0.00465.
In my opinion, there is a greater probability of BTT returning to January before April.