The BTT price has reversed higher following a test of a major support level. Furthermore, BitTorrent has now broken above a significant trend line.
BitTorrent is last trading at $0.002570, up +$0.000076 (3.04%)
BTT has a current market cap of around $1.7 billion and now ranks as the 51st largest crypto after being leap-frogged by Decred, whose’ value increased to $1.707 billion.
The crypto market is certainly not for the faint-hearted. For those of us that cut our teeth on the FX and commodity trading desks, the volatility takes some getting used to.
Nine days ago, I wrote a report entitled ‘Here’s why BTT could drop 66%’. Today I’m asking if it is breaking out to the upside.
Thankfully, the BitTorrent price didn’t reach my apocalyptic second support target. However, it did trade 32% lower to my first support level, which proved a springboard for the 30% reversal we have seen over the last week.
So can I claim to be half right?
Furthermore, the BTT price has now clambered above a descending trend line resistance from the April high. So will these potentially promising developments mark the start of a sustained price rally?
BitTorrent price forecast
The daily price chart clearly shows the significance of the horizontal support at $0.001990. this time last week, when Bitcoin traded below $30,000, it dragged BitTorrent to an intra-day low of $0.001810 and briefly below the support. Crucially, BTT recovered the line, closing the day at $0.002146.
Secondly, the bounce from support carried the BTT price above a 10-week downtrend at $0.002560. However, the breach was unsuccessful, and BitTorrent succumbed to gravity, slipping back into the downtrend.
However, the last two green daily candles have now confirmed the breakout.
This confirmation should be viewed as potentially very promising. However, some obstacles to the rally are seen in the form of the major moving averages.
The 50-day moving average at $0.003070 is the first big test for the price. Moreover, the 30% decline was triggered when BTT lost the support of this DMA. On that basis, it should offer a fair amount of resistance.
Next comes the 100 DMA at $0.003896. Again, this was a strong area of support and likely to prove an equally substantial resistance level.
So, in summary, BitTorrent is showing some signs of recovery. And as long as the $0.001990 support holds, that will be possible. However, bulls should not get carried away just yet. There is still a lot of work before the BTT price is home and dry.