On May 26, Justin Sun, the 28-years old CEO of TRON, revealed that he was working on “something huge and amazing” that will impact the future of TRON and BitTorrent, but that the announcement will be made in early June. As rumors began spreading the market valuation of these two cryptocurrencies started surging. TRON and BitTorrent value rose more than 50 percent within days after Sun’s tweet.

On June 3, in a press release, Justin Sun announced that he had spent $4.6 million in a bidding contest to have lunch with Warren Buffett in an attempt to influence the Berkshire Hathaway CEO to invest in Bitcoin and other cryptos. Although many saw the move as a marketing stunt, the market reacted quickly dropping the price of TRX and BTT around 20 percent.

As it was seen above, breaking news and other reported events usually can have a short-lived impact on the market valuation of cryptocurrencies. In this case the saying “buy the rumor, sell the news” took effect as the first piece of information released increased the prices of TRON and BitTorrent, but the actual announcement was taken as a sell event.

Now, a deep technical analysis will help determine where TRX and BTT may be heading.

On Nov. 25, 2018, TRON hit a low of $0.011 and since then its market valuation has appreciated approximately 270 percent to reach a high of $0.041 on June 2.

On its way up, TRX was not able to break above the setup trendline. At the moment, a green nine has been formed on the current candlestick predicting a three to twelve days correction, based on the TD Sequential Indicator on the 3-day chart. The sell signal could get invalidated if TRON is able to go higher than the recent high of $0.041.

A series of support and resistance points can be drawn on the 1-day chart. Currently, TRON is trading between the $0.031 support and the $0.040 resistance level. A break below support could take this cryptocurrency down to the next levels of support at $0.027, $0.022 or lower.

Conversely, a move above the resistance could take TRX all the way up to $0.049.

On the 12-hour chart, TRON can be seen trading inside an ascending parallel channel. As it sits right below the middle line of the channel, a drop to the bottom could be forecasted where it could bounce off all the way to the top.

If TRX breaks below the parallel channel, it could experience a decline in its market valuation.

Since May 8, BitTorrent went up more than 200 percent in just 20 days reaching a high of $0.00186.

Following the parabolic move, the TD Sequential Indicator is also predicting a retrace for this cryptocurrency based on the 3-day chart. A sell signal has been given by the technical index with a green nine that is currently trading below the 7-three-day moving average.

Now, a drop down to the 30-three-day MA could be expected, but if BTT is able to trade above the recent high of $0.00186 the bearish signal will get invalidated.

On the 1-day chart, it can be seen how BitTorrent pulled back to the $0.00127 support level after the recent bullish impulse. If this support point is not able to hold the price of BTT, the probabilities for a further decline to $0.00100 will increase.

Nonetheless, if volume starts picking up BTT could rebound from around the current price point to try to make a higher high.

A range of moving averages on the 12-hour chart could better predict the price action that BitTorrent will have in the upcoming days.

At the moment, this cryptocurrency is trading below the 30-twelve-hour moving average and could find support around the 50-twelve-hour moving average. If the later is not able to hold, then BTT could plummet to the 100 or 200-twelve-hour MA.

The bullish trend will continue only if BitTorrent is able to climb on top of the 7-twelve-hour moving average.

The recent surge that TRON and BitTorrent went through was so strong and fast that an exhaustion point was needed for a healthy continuation of the bullish trend. Now, these two cryptocurrencies seem to be retracing and the 3-day chart predicts a further drop for both of them. Although Justin Sun might be able to pump the coins by continuing to make announcements about announcements, technically, TRX and BTT may be due for a pullback.

The post Buy the rumor and sell the news: TRON and BitTorrent technical analysis appeared first on CryptoSlate.

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