Yesterday, December 6, BitTorent’s token BTT skyrocketed by 128%. This uptrend continuation started mid-October and amassed 213%, measured to its highest spike. Since yesterday, we have seen a pullback of 35%, but the price is still very much in a larger uptrend.
In an X post, Justin Sun revealed that Tron Network reached its key milestone of 200 million users yesterday, which is seemingly related to the price increase as Sun bought out the former Torrenting website a few years back. This analysis will examine the driving factors behind this meteoric rise and its further price potential.
BTT is an integral part of the broader Tron Network ecosystem. As such, the development related to Tron impacts its sentiment as well. This is why it is no surprise that after announcing the 200 million users milestone yesterday, the price of BTT increased.
In an X post , Justin Sun shared this key achievement with his 3.4 million followers, calling it a “significant milestone but also a testament to our growing ecosystem.”
This is the continuation of the uptrend that started in 2020 and has shown a slow and steady incline. Since we haven’t seen any significant surge in the influx of new users, this milestone only strengthened the already bullish sentiment and hasn’t started it.
Justin Sun’s X post was published around 7 AM, while the price increase started 3 hours later, showing a direct correlation. However, another driving factor has stood out.
If this milestone sparked the price increase, a larger number of short liquidations caused the price surge. According to CoinGlass data , $215,000 short positions were forced to close yesterday on Bybit, compared to only $51,000 longs.
This created a short squeeze event, which forced all the short sellers to become buyers, further propelling the price rise by creating a cascading effect.
After the mainnet launch on January 13, 2022, the BTT token was redominated in a 1:1000 ratio. This caused the price reevaluation; after January 27, its price was $0.0000023 from $0.0023.
Since then, the token’s price has declined, forming a descending triangle until it reaches a low of $0.00000036 on October 13, 2023. Measured from its January 2022 high, this was a decrease of around 85%.
As the price approached the triangle’s apex, it increased and broke out from the descending structure. Yesterday’s price spike was a culmination of that uptrend and recovered to 0.618 Fibonacci level from the whole range.
Zooming into the hourly chart and examining the wave structure, we can see that the increase was formed in a five-wave manner. Since it has most likely ended, we are now witnessing the first sub-wave of the next corrective structure that will lead the price to its first higher low.
To its optimal Fibonacci retracement level of 0.618, the correction should be completed at $0.00000058. If it does find support in this area and establishes a higher low, it would indicate the start of the larger bull cycle. We would expect further uptrend continuation above yesterday’s high in the following period.
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