Recently listed BitTorrent Token, BTT is outperforming top cryptocurrencies today with data from CoinMarketCap showing the token appreciating 5.21% over the past 24 hours.
The token which listed on Binance on the 31st of January quickly spiked upon listing showing ICO investors a significant return.
It has more recently been consolidating into a triangle pattern as investors a more steady price that they are comfortable valuing the token at.
It is not uncommon for a triangle pattern to be broken with a significant move so we may see a significant move to the upside or the downside ahead for BTT.
Volume has also been low in recent trading, a characteristic common of periods of price consolidation.
The shorter term 4-hour chart shows price is meeting resistance at $0.00098 which has acted as resistance numerous times already.
However, the price has been testing the level numerous times which typically makes a level weaker due to fewer sellers to hold the level on each test.
The outperformance compared to top cryptocurrencies combined with price action approaching the end of its triangle pattern increases the likelihood that BTT will break out of its triangle pattern with a significant move to the upside.
The conditions are much different for top cryptocurrencies with the majority recording losses over the past 24 hours.
A spike in Litecoin in early trading yesterday acted as a leading indicator for an upward movement in Bitcoin.
However, both Bitcoin and Litecoin have since pulled back and are recording losses today.
Price overcame resistance at $3902 yesterday but has sharply reversed back to this point today, a bearish sign showing traders rejecting higher valuations.
If price fails to quickly rebound, yesterdays high will be the point of a lower high on the daily chart and result in a bearish market structure.
On the 4-hour chart, we are seeing a pattern similar to a double top with price action twice meeting resistance at $3980.
Short-term momentum is with the sellers with both the 4-hour RSI and MACD decreasing.
Today’s low has been $3865, but the price has since risen back up to test $3902 which is likely now providing resistance.
Overall market structure is setting up bearish for Bitcoin increasing the likelihood of downward moves from here.
- BTT outperforms Bitcoin with 5.21% increase over the past 24 hours.
- An early increase for Bitcoin yesterday but the price has since reversed.
- If price cannot recover from here, a lower high will be formed resulting in a bearish market structure for Bitcoin.
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