Bitway's Insatiable Rally Sparks Fears of Crash

Introduction

Bitway's price has surged 5,000% in recent days, with traders betting against the token's collapse facing significant losses. The token's limited supply and thin order books raise concerns about its long-term sustainability.

What's Driving the Rally?

Bitway is a crypto project offering yield-earning products and developing a Bitcoin-compatible blockchain. Its BTW token supports staking, rewards, and governance. The rally has no obvious single catalyst. Binance Wallet campaigns and Bitway Earn programs have encouraged token lockups, while Bitrue added BTW trading on October 13.

Supply and Demand

According to CoinGecko, only 1.5 billion of BTW's 10 billion tokens are circulating. That limited supply can amplify buying pressure. The rally also pushed BTW into CoinGecko's most-searched cryptocurrencies.

Traders' Perspectives

Traders are betting $100,000 on a crash, predicting a possible 60%-80% collapse after BTW's roughly 5,000% rally. However, betting against this momentum has proved expensive. CoinGlass recorded $2.9 million in short liquidations against just $543,000 in long losses.

Technical Analysis

BTW's daily RSI has reached 81, suggesting overbought conditions. Trading volume is also weaker than during previous rallies. Yet the bullish breakout remains intact. A move above 2.75-2.81 could bring the psychological $3 level into view. However, a daily close below $2.28 would signal weakening momentum.