Bitcoin SV (BSV) Technical Analysis: Continues to Capitulate Inside Falling Wedge
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Latest Bitcoin SV News
Bitcoin SV (BSV) has surprisingly managed to hold above the $50 level today despite the crypto market sliding by $10 Billion, after New York Attorneys accused Bitfinex of covering up missing funds with Tether.
Today BSV is down -3.36% against the US dollar and trailing 0.41% behind BTC, with 24hr trading volume rising by over $29 Million as traders rush to exit out of the falling market.
Over the last few months, waves of bad press directed at the project’s lead proponent, Craig Wright, have caused significant damage to Bitcoin SV’s reputation.
It started when the self-proclaimed creator of Bitcoin removed himself from his highly active Twitter account in March, and began a legal campaign against a vast number of crypto social media celebrities who had called him ‘a fraud’ for declaring to be Satoshi Nakamoto. These celebrities include Ethereum’s Co-Founder Vitalik Buterin, crypto blooger Peter McCormack, and Hodlonaut - the people responsible for creating the Bitcoin lightning torch.
The response from other crypto projects and the wider community was substantial. A viral meme quickly circulated which said “We are all Hodlonaut”, in reference to the infamous ‘We are all Satoshi’ saying. Binance CEO and Founder, Changpeng Zhao, announced the delisting of BSV from its platform after demanding Craig Wright to cease threatening members of the crypto community with litigation. Not long after, a number of other exchanges and service providers announced they were delisting BSV, including Shapeshift and Kraken.
Bitcoin SV Price Analysis
On the 4H BSV/USD chart we can see that the asset is continuing to consolidate inside a falling wedge between a long-standing resistance level and a strong downtrending support.
Typically, falling wedges are bullish patterns that breakout once the downward bearish pressure terminates; giving buyers an opportunity to regain control and launch an upside recovery.
Sometimes however, these patterns continue bearish if the underlying asset has poor market demand. Taking into consideration the recent flurry of bad press surrounding the project, it may be that investors have been deterred from buying the asset especially now that the world’s largest crypto exchange has removed it from its platform.
Looking at the 4H indicators we can see a number of mixed signals that make it difficult to predict where this asset could go over the next few weeks.
On the 4H MACD, the 12MA has recently converged above the 26MA and the histogram has started to turn bullish.
On the RSI indicator, the line has been making consistently higher lows since April 16, and is climbing towards the midday point in the index channel.
The Aroon Up line has also bullishly crossed above the Aroon Down line.
Despite these bullish momentum signals, there are still a number of bearish signs that suggest the asset is still under the control of the sellers.
- The 25MA failed to converge above the 50MA, and is now plummeting further away from the longer moving average.
- Parabolic SAR dots are still appearing above the price action which tells us that the trend is still favourably bearish.
In order to have a clearer idea of which way this asset will go, we will need to observe how the price action interacts with the downtrending resistance and support levels in the falling wedge pattern over the next week. If BSV is able to successfully breach the resistance, then we could see a breakout up to the throwback resistance level (dashed line) before correcting. If the asset crashes through its underpinning support, then it’s likely that the psychological $50 level will become a very strong resistance and push BSV down to a new 6-month low.
Bitcoin SV (BSV) Price Target
All ROIs are calculated from the asset’s current value at $53.70 (AToW).
PT1: $55.80 (3.91%)
PT2: $58.00 (8.01%)
PT1: $50.00 (-6.89%)
PT2: $42.00 (-21.79%)