The BitTorrent price continues to underperform, slipping 2.6% to $0.00702. Further declines now look likely as buying interest fades.
2021 started brightly for BTT. The token that powers the popular file-sharing platform BitTorrent had gotten off to a flying start in the first four months of the year with an incredible 4,400% rally to its 5th of April peak of $0.01346.
Fast forward a month, the BitTorrent price has lost almost half of those gains and currently sits at $0.07084. Even after the recent pullback, the year-to-date return of 2350% may have left Warren Buffet blushing.
BitTorrent was acquired by Justin Sun’s blockchain platform, TRON, in 2018. In 2020, Sun famously had lunch with legendary investor Buffet after securing the opportunity with a $4.5 Million winning bid at a charity auction.
Along with other crypto industry veterans, Sun spent the time educating the ‘sage of Omaha’ on the virtues of cryptocurrencies; Buffet remained unconvinced.
Recent price action has seen BTT trading sideways in a narrowing range. This triangular, pennant formation typically leads to a large price move, once broken.
As we can see on the 4-hour chart. The BitTorrent price has stepped outside of this formation, breaking the lower end of the channel, in place from the April 21st low of $0.00509.
The path of least resistance is now lower, with the 18th of April low of $0.00572 as the first target. Further support is found at $0.00509.
Trading volumes increased steadily as the price rose earlier in the year. The reverse has been true on the way down. Volumes have decreased consistently on the retreat from the April peak. This suggests demand is not supportive at this level.
We may need to see lower prices before buyers are encouraged to start accumulating once more.
A break of the descending trend line at $0.00740 (the upper end of the pennant) would signal prices are reversing higher.
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