On March 11, 2019, the price of BitTorrent Token (BTT) reached a high of nearly $0.0009. On the same day, nearly 1 trillion BitTorrent tokens were distributed to all then-current owners of BTT. These airdrops will continue monthly until Feb 2015.
Following this spike, there was a sharp drop in price to pre-breakout levels. BTT has not experienced significant movement since. If this is a sign of things to come, we might see subsequent price spikes during BTT airdrops without significant price variations thereafter.
Here is the price outlook for the period between Mar 9 and Mar 15:
In our Mar 12 analysis of BitTorrent we predicted that the price had made a bottom. From there, an upward move was expected in the near future. Such an upward trend has not yet begun; on the contrary, the price has stabilized around pre-breakout levels.
Based on today’s analysis, we still believe gradual price increases will continue.
Key Highlights For March 15
- The price of BTT has been on a gradual uptrend since Mar 9.
- BTT made a rapid upward move on Mar 11
- A sharp drop ensued that took it to pre-breakout prices.
- It is now following a slowly ascending support line.
- There are resistance areas near $0.00084, $0.0009, 0.00103.
- There is support near $0.00075.
The price of BitTorrent (BTT) on Binance is analyzed at 30-minute intervals from Mar 9 to Mar 12.
The price reached a low of $0.000712 on Mar 9. Several completed market cycles have occurred since. As prices dipped, each low was higher than the preceding one. Tracing these lows gives us the ascending support line.
The support line can act as a floor to price. It predicts the lower limits of price over a period of time. It also predicts the general trend and projected rate of growth for an asset.
The price of BTT has increased at the same rate as predicted by the ascending support line. It is likely that the price will continue increasing at a steady rate as predicted by the support.
The price of BTT on Binance is analyzed at 30-minute intervals from Mar 3 to Mar 12.
The price made a rapid move on Mar 11, which took it to a high of $0.0008699. A rapid drop ensued.
After stabilizing, the price made a high of $0.0007780 on Mar 12. It has made successive lower highs since. Tracing these highs gives us a descending resistance line.
The resistance line can effectively act as a ceiling to price in the same way support acts as a floor.
The resistance and support lines combine to create a symmetrical triangle, which is a neutral pattern, making price increases and decreases equally likely.
The triangle is more effective in predicting price fluctuations than resistance and support lines alone. Based on this pattern, it is likely that the price keeps moving inside the confines of a triangle until a point of convergence between resistance and support occurs.
Triggering The Signal
The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
Combined with simple moving averages (SMA), MACD can be used as a trigger for buy and sell signals. Signals are triggered whenever the MACD line is above 0 and the price is above the 21 (red) and 50-period (green) SMAs.
On Mar 14, the price validated the support line. Afterward, it started a gradual upward move which took it above the 21 and 50-period SMAs. During the same time, the MACD line crossed above 0.
This triggered a buy signal—indicating that the previous downtrend may be over. This further confirms the projected continued price increases into the near future. However, this projected upward movement would be invalidated by a price movement below the SMAs and the MACD line crossing below 0.
Using these indicators, it is likely that the price gradually increases and eventually breaks out from the triangle.
In order to better visualize the possible reversal areas in case a breakout/breakdown occurs, the price of BTT on Binance is analyzed at two-hour intervals from Feb 18 to Mar 12.
The closest support area is found near $0.00075. A breakdown below this level could trigger a rapid price decrease to extremely low levels. Based on our analysis, this is not likely.
The closest resistance areas are $0.00084, $0.0009, and $0.00103. If a breakout occurs, these would provide likely reversal areas. We believe that price may eventually rise toward these highs.
Summary of Analysis
Based on this analysis, it is likely that the price revisits the $0.00086 level again and possibly breaks out for the second resistance area near $0.0009. If the price reaches the first resistance area, such a prediction may be partially validated. If the price reaches or exceeds $0.0009, this prediction will be fully validated.
Do you think the price of BTT will eventually initiate an upward move? Let us know your thoughts in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.