Bitcoin SV (BSV) Technical Analysis: New Bull Run Underway, Looking to Break Back above Supporting Kumo
Bitcoin SV, one of the hard-forked projects to emerge out of the recent Bitcoin Cash split, is currently the best performing coin among the top ten cryptocurrencies by market capital following a recent surge of new bullish support. Right now, BSV is the only altcoin to break back into the green ahead of BTC after another bearish day, securing a gain of 1.66%.
In the news this week, nChain, the core development team behind Bitcoin SV, announced its latest blockchain project in the pipeline, Metanet. According to nChain’s Chief Scientist and self-proclaimed Founder of Bitcoin, Craig Wright, Metanet will be a “secure alternative to the Internet, built on the blockchain”, where compressed data is sent around the network as a Bitcoin microtransaction so that people can profit from the value of data as opposed to relying on ads and other online revenue streams.
At this moment, BSV is on track to recover back on to the 2hr supporting Kumo on the Ichimoku indicator as bullish momentum continues to drive the asset upward. If bulls can achieve this, it will be a very promising signal for BSV going into the rest of this week.
On the 2hr BSV/BTC chart, we can see that the asset has been range bound between the 0.022BTC and 0.0248BTC levels for the past five days with an interior flipping support/resistance level at 0.0234BTC. It was noted in the video analysis that this interior level has played an important role in helping traders determine the strength of BSV’s performance this week based on whether the price action rose or fell through this central line.
Right now we can see that the price action was able to make an upside recovery off the strong intraweek support at 0.022 BTC and retrace back to the middle line before briefly correcting. Now bulls appear to have recharged and are starting a second impulse leg, aiming to test the top of the current range at 0.0248BTC.
On the 2hr Ichimoku indicator, we can see that candles have almost managed to break back on top of the support kumo after bearishly falling through it during yesterday’s intraday trading. This is a promising sign of a strong trend reversal and could help encourage further bullish support to arrive to help lift the asset to its next resistance.
Other promising signs of a continuation can also be found on a number of other 2hr indicators;
-Indicator dots on the Parabolic Sar tool have recently started to appear beneath the price action, which is a classic sign of a strong trend reversal.
-On the Chaikin Money Flow tool, we can see that the indicator line is now close to breaking above the zero line as buying pressure increases above the current market selling pressure.
-There is a bullish convergence between the 12 and 26 MAs on the MACD indicator now, with buying candles on the histogram.
-The indicator line on the RSI is now well into the middle of the index channel and starting to head back towards the overbought region above after a brief moment of correction.
-The Aroon Up line has just converged above the Aroon Down line in the last 2hr candle, which is also another positive sign of strong bullish momentum.
Bitcoin SV (BSV) Price Targets
Judging by the indicators, it seems clear that a bullish continuation is more than likely in the short-term. All return on investments (ROIs) are calculated from the asset’s current value at 0.0235BTC.
PT1: The first price target will be the top of the current range at 0.0248BTC (5.53% ROI)
PT2: From there, we could expect bulls to make a final impulse leg as high as the 0.0268BTC (14.04% ROI) level before correcting.