The BitTorrent price has surged by more than 52% in the past 24 hours as investors react to the date of the platform’s mainnet launch. BTT, its native token, is trading at $0.0037, which is about 77% above the lowest level this month. This rally has pushed its total market capitalization to more than $3.4 billion.
Why has BTT rallied
BitTorrent is a relatively popular software company that has been around for almost two decades. The software is widely used by people to download files in various websites like PirateBay.
In 2018, Justin Sun, the millionaire founder of Tron, announced that he had acquired the company for about $180 million. Since then, BitTorrent has become a leading player in the blockchain industry. Its number of users has risen to more than 1 billion while the number of active BTT wallets has jumped to more than 200 million.
Like all other altcoins, the BitTorrent price declined sharply last week as concerns about higher interest rates and tighter monetary conditions rose. At the time, the BTT price crashed by more than 35% and dropped to the lowest level in months.
The coin has recovered quickly this week. This jump happened after the developers announced that the mainnet for the BitTorrent Chain (BTTC) will happen on December 12th. On the same day, the BTT token will go through a redenomination. In this, the total market cap of BTT will remain the same while the old BTT tokens will be redenominated and swapped with a new ratio of 1:1000.
BTTS is a chain built using Justin Sun’s Tron network. It will be an EVM-compatible interoperability protocol that will enable transfers between multiple chains.
In most cases, cryptocurrencies tend to rally ahead of a major announcement. For example, Ethereum rallied in 2020 ahead of the ETH 2.0 launch and this year, Cardano rallied ahead of the Alonzo hard fork. Polkadot also rallied ahead of the parachain auctions. This rally tends to fade after the event.
BitTorrent price prediction
Turning to the four-hour chart, we see that the BTT price went parabolic on Monday this week. This rally managed to push the coin above the 61.8% Fibonacci retracement level. The coin also rose above the 25-day and 50-day moving averages. It also crossed the key resistance levels at $0.0032 and $0.0034.
Therefore, while the BitTorrent price could keep rising, there are significant risks that could push it lower in the coming days. If this happens, the coin could retest the 50% retracement at $0.0030, which is about 12% below the current level.
