Bitway (BTW) has emerged as the top-performing cryptocurrency on October 14, climbing nearly 40% in a single day and 250% over the last month. The token currently trades around $2.50 and has reached a market capitalization of almost $4 billion, making it the 32nd-largest digital asset.
The rapid gains have prompted many market participants to consider opening short positions. Multiple analysts point to technical indicators suggesting the token may be due for a correction.
Overbought Signals
Analyst Zayn noted that BTW has posted eight consecutive green candles, indicating extremely overbought conditions. The analyst expects a "hard correction" to $2 and below but cautioned traders to manage risk carefully, advising: "Keep your position small and keep your stop-loss and liquidation levels above $3.50."
BTW's Relative Strength Index (RSI) has surged past 80, suggesting the price has appreciated significantly in a short period and may face pullback pressure.
Technical Warning Signs
Analyst Crypto With Gopal identified a double-top pattern after the price was rejected near $2.75-$2.80, signaling potential profit-taking pressure. The analyst highlighted the $2.40 neckline as a key support level, noting that a breakdown could trigger a deeper pullback toward $2.10.
UMER (THE BULL) identified a short setup with focus on the $2-$2.05 zone and cautioned that traders should always use stop-loss orders when trading BTW.
Concentration Risk
According to CoinMarketCap data, the top 10 addresses control more than 96% of BTW's supply, making the coin highly vulnerable to potential price manipulation.
