The BitTorrent price has lost momentum. BTT is trading at $0.0082, which is 38% below the all-time high of $0.0134. It reached this ATH on Monday last week. Its market cap has dropped to more than $5 billion and is now the 27th largest currencies.
What happened: The BTT price has dropped sharply recently even as other digital currencies like Bitcoin and Ethereum have rallied. This performance is mostly because of profit-taking considering that the price had risen by more than 4000% this year alone. As the price declined, many buyers started to sell, in what is known as the distribution phase.
Why it matters: BitTorrent is not the only digital currency to go through this distribution phase after having a major rally. In recent memory, currencies like Dogecoin, Theta, and Crypto.com have struggled after going through a major rally.
What next for the BitTorrent price?
On the four-hour chart, we see the remarkable story of BitTorrent coin, the native token for the BitTorrent platform. For starters, this is the biggest torrenting platform in the world that allows people to download and watch content mostly for free.
Recently, however, the price has dropped because of profit-taking. Remember, a week ago, I cautioned holders to be ready for a pullback because I predicted that this trend would soon happen.
The price has moved below the 38.2% Fibonacci retracement level. It has also declined below the 25-day and 15-day moving averages while the average true range (ATR) has dropped to the lowest level since April 4.
Therefore, in my view, this distribution phase is not over and the price will remain under pressure. As such, the key level to watch is $0.0074, which is about 10% below the current level. If it drops below this level, it will mean that bears are in control and that they will next target the 50% retracement at $0.0073. On the flip side, a move above the 23.6% retracement at $0.0105 will invalidate the bearish view.