The BitTorrent Token (BTT) price has risen more than 1,400 percent in the past two months. The native token of BitTorrent, the popular peer to peer (P2P) file sharing protocol, has managed to become the 24th most valuable currency.
There are multiple factors that increase the BTT market value to above $ 5.2 billion. These include factors such as Tron’s founder Justin Sun, Poloniex stock exchange and increased sensitivity in social media.
Social media sensitivity increased
Tron’s founder Justin Sun’s purchase of large amounts of NFT (non-fungible tokens) is said to be behind the rapid increase in the BTT price to date. On the other hand, the crypto exchange Poloniex, which was acquired by a consortium including Sun, announced its BTT staking service on March 25.
The announcement of staking on Poloniex increased buyers demand for BitTorrent Token. The stock exchange had explained as follows:
“Thanks to the Poloniex staking feature, users earn rewards as well as making transactions, depositing and withdrawing funds. In addition to this flexibility, customers can continue to earn staking rewards until they decide to convert their funds into a different asset.”
BTT daily sentiment score and tweet volume. Source: The Tie
Also, looking at the BTT tweet volume, the sentiment on social media rose 377 percent just before the BTT price started to rise.
Is there a correction or a parabolic rally?
Daily chart of BTT / USDT pair (Binance). Source: TradingView
Traded at $ 0.0003780 on February 2, the BTT price rose to an all-time high of $ 0.0057500 as of April 1. During this period, an increase of 1.421 percent was observed.
The moving averages (MA) are trending upward with an acceleration and the relative strength index (RSI) is in the overbought territory of over 85. While the bulls have the upper hand in the market right now, long wicks in the candlesticks for two days indicate profit buying and traders should now be careful about correction.
If profit purchases and sales increase, the first support point is likely to be observed at the 38.2% Fibonacci retracement level calculated at $ 0.0040484. A strong upward recovery from this level could make it possible for the BTT price to accelerate again to all-time highs, even 0.006 psychological resistance.
If the pair fails to hold onto the initial support and the correction deepens, the 20-day exponential moving average (EMA) (0.003296) will work as the strongest support. Such a decline may cause a horizontal movement for a while and a delay of the upward trend.
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