BTT, the native token powering the decentralized peer-to-peer (P2P) file sharing platform BitTorrent, has become the highest-gaining asset in the market in the past 24 hours, increasing by 4%.
However, although this increase may reflect a renewed interest in the token and a potential change in market sentiment, the price chart of BTT indicates the possibility of a short-term correction.
BitTorrent lacks strong upward momentum to sustain the price increase
The price of BTT has increased by 4% in the past 24 hours. At the time of writing, this altcoin is trading at $0.00000111 with gradually increasing trading volume.
However, despite the price increase, BTT's Aroon Up Line is currently at 0%, indicating this upward trend lacks strong momentum. The Aroon indicator assesses the strength and direction of a trend by measuring the time since the last high or low in a certain period.
BTT Aroon Up Line indicator | Source: TradingView
When the price of an asset rises while the Aroon Up Line is at 0%, this indicates that, despite the price rising higher, there is no strong upward momentum in recent times.
The MACD indicator of BTT also supports this bearish outlook. At the time of writing, the MACD line (green) of the token is significantly below the signal line (orange).
BTT MACD indicator | Source: TradingView
The MACD indicator of an asset helps identify trends and momentum in price movements, while assisting traders in identifying potential buy or sell signals through the crossover between the MACD line and the signal line. In the case of BTT, when the MACD line is below the signal line, this indicates a bearish trend, implying that the price of the asset could decrease. Traders often view this as a sell signal.
BTT is approaching an important support level
According to the daily chart, BTT is currently trading above the important support level at $0.00000093. If selling pressure increases, the price of the token may test this level again. If the bears overpower the bulls, BTT could extend its downtrend and drop to $0.00000067, the lowest level reached in August.
BTT/USDT daily chart | Source: TradingView
On the contrary, if buying pressure increases, BTT could continue its upward trend and break through the resistance at $0.00000114. If this level is successfully broken, the token could reclaim the level of $0.00000128.
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