BTT, the native token operating the decentralized peer-to-peer (P2P) file-sharing platform BitTorrent, has become the highest-gaining asset in the market over the past 24 hours, increasing by 4%.
However, while this increase may reflect renewed interest in the token as well as a potential shift in market sentiment, the price chart of BTT indicates a likelihood of 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, the Aroon Up Line of BTT is currently at 0%, indicating that this upward trend lacks strong momentum. The Aroon indicator assesses the strength and direction of a trend by measuring the time since a high or low was reached over a certain period.
When the price of an asset rises while the Aroon Up Line is at 0%, it indicates that although the price is increasing, there is no strong upward momentum recently.
The MACD indicator of BTT also supports this bearish outlook. At the time of writing, the token's MACD line (green) is significantly below the signal line (orange).
The MACD indicator of an asset helps identify trends and momentum in price movements, and assists traders in recognizing 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, it indicates a bearish trend, implying that the price of the asset may decrease. Traders often see this as a sell signal.
BTT is heading towards an important support level.
According to the daily chart, BTT is currently trading above an important support level at $0.00000093. If selling pressure increases, the price of the token may retest this level. If the bears overpower the bulls, BTT could extend its decline and fall to $0.00000067, the lowest level reached in August.
Conversely, if buying pressure strengthens, BTT could continue its upward trend and break through the resistance level at $0.00000114. If this level is successfully breached, the token could regain the level of $0.00000128.