Over the last 40 hours, BitTorrent [BTT] has experienced a significant rally of 22.8%, coinciding with a strong bullish trend in Bitcoin [BTC] that nearly touched the $90,000 mark. The overall market sentiment has turned overwhelmingly positive, leading to a swift uptrend in various altcoins.
With the Crypto Fear and Greed Index currently standing at 86, indicating extreme greed among investors, some are speculating whether a market correction might be on the horizon.
BitTorrent Shows Bullish Momentum with a 22% Rally
Both the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) have displayed robust bullish signals, with capital inflows reaching levels unseen since January 2023. This surge in capital has propelled BTT to surpass previous highs set back in May.
The increased trading volume and price gains are direct results of the ongoing bullish market conditions and the influx of capital. Interestingly, while meme and AI sector tokens have seen substantial gains during this rally, traditional tokens like BTT have lagged behind.
In the shorter timeframes, a minor 15% price correction occurred, with momentum showing signs of a potential bearish shift on the hourly chart. However, the longer timeframes continue to exhibit strong bullish indicators.
The $0.00000115 level holds historical significance and is expected to provide support in the coming days. Yet, a deeper retracement cannot be ruled out entirely.
Liquidation Heatmap Suggests Potential for Further Correction
Upon analyzing the 1-week data, significant liquidity pockets were identified around the $0.00000107-$0.00000103 and $0.00000098 price levels. It is likely that BitTorrent prices might revisit these levels to clear out the existing liquidity before a bullish reversal.
Additionally, the horizontal support at $0.00000115 aligns with the 23.6% Fibonacci extension level. This convergence suggests that despite the volatility in lower timeframes, there’s a possibility of the BTT bulls defending this price zone on the 1-day timeframe and initiating the next leg up.
Disclaimer: The views expressed in this article are solely the author’s opinion and should not be construed as financial, investment, or trading advice.