BitTorrent Token (BTT), continues its weak performance as it trades above support at $0.000736.
After numerous tests, trading last week resulted in the price dropping below the level.
Numerous tests of a support level serve to weaken the level with fewer buyers to hold the level on each consecutive test.
Price did close below the level last week but underwent a sharp recovery the following day to bring the price back above the level.
Price prospects for BTT are looking extremely bearish as the token failed to record significant price increases during the trading two weeks ago when all top cryptocurrencies were recording substantial increases.
The price did briefly rise during the trading two weeks ago but quickly found selling pressure around a resistance level at $0.000835.
The drop below $0.000736 last week was followed by a brief consolidation and quick recovery.
The drop took place on Thursday, a day where almost all major cryptocurrencies recorded significant declines.
The quick recovery indicates traders are not yet willing to accept such low valuations.
However, the price continues to test the $0.000736 support level indicating another drop below is likely.
Another recently launched cryptocurrency, Chainlink (LINK), has been forming a triangle pattern.
LINK has been recording higher lows since early March.
The price of LINK did drop below the upward trendline forming the lower highs on Thursday but similar to BTT; the price quickly recovered the following day.
Lower highs have been forming since LINK formed its all-time high in early April.
The triangle pattern forming increases the likelihood that the pattern will break down with a significant move as opposed to a consolidation occurring.
$0.475 is another important level to monitor for LINK on the daily chart.
This level has acted as both an important support and resistance point in LINK’s brief trading history.
The key resistance level to monitor above the price is $0.536.
This level has acted as resistance since the price broke below earlier this month.
At the moment, buying and selling pressure is mostly equal as indicated by the daily and 4-hour MACD and RSI.
This indicates no clear advantage to either the buyers or sellers in how the triangle pattern is likely to play out.
If the market leader Bitcoin makes a significant move to the upside or downside, the odds of LINK breaking from its triangle pattern in the same direction are drastically increased.
- BTT continues weak performance as it repeatedly tests a support level.
- LINK has been forming a triangle pattern, but there is no advantage to buyers or sellers in how it will break out.
- If Bitcoin makes a significant move, it is likely that LINK will break from its triangle pattern in the same direction.
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