BitTorrent turned alarmingly overvalued on Monday as its price popped higher by as much as 164 percent quarter-to-date.
The BTT/USD exchange rate surged to $0.013, its highest level on record, after rallying seven days in a row. Every sell-off attempt met with an equally aggressive accumulation, prompting more and more traders to buy the Justin Sun-backed asset at intraday highs. The volumes soared likewise.
BitTorrent rally looks overblown. Source: BTTUSD on TradingView.com
The strong upside move pushed BitTorrent’s Relative Strength Indicator to 94.95, a reading that pointed to an extremely overbought asset. Typically, a higher RSI reading prompts investors/traders to unwind their holdings. As they secure their profits, the asset tops out and falls lower to find its next local support. In a worst-case scenario, it just crashes.
It isn’t easy to estimate what could happen to BTT/USD. Many analysts agree that the BitTorrent token’s rally has surfaced without any concrete catalyst.
But Joseph Young, an independent cryptocurrency