For Bitcoin SV, a quick turnaround above $165 has turned into a sad drop under $160 yet again. Possibly due to the high correlation with Bitcoin and its price drop due to the BitMEX mess, BSV suffered the recent decline. However, the analysis suggested that the markets were also identifying tell-tale signs of a fallout before the slump started a few hours back.
Bitcoin SV 1-day chart
Source: BSV/USD on Trading View
The first noticeable factor in BSV‘s daily chart is the long-term downtrend. Since peaking on 2nd August at $260, the price re-test the downtrend again on August 16th, valued at $235. Now, after more than 40 days, the trend was re-test at $180 on 30th September, falling to break above yet again.
The transition range has been mentioned in the past analysis but the fact that BSV has kept its calm above $150 till now, might be a sign of a strong bottom. While the price faces over-heading selling pressure from the 50-Moving Average, Bitcoin SV might not face a collapse below $150 in spite of strong bearish momentum at the moment.
Stochastic RSI remained at a cross-hair with the price, so over the next couple of weeks, the price might drop down to a near price range of $150.
Bitcoin SV 4-hour chart
Source: BSV/USD on Trading View
Although deemed as a flash crash at the moment, Bitcoin SV’s 4-hour chart suggested that a short-term pullback was expected. Undergoing a rising wedge pattern since the start of 21st September, the breakout at press time might have been a result of its previous oscillation within that range. While volumes remain minimal, the sell-pressure indicated by the Relative Strength Index was massive.
At the moment, Bitcoin SV has dropped under the 50-Moving Average, which is a minor concern, and a quick recovery above the MA is essential to trigger a quick bounce. $165 might not be taken anytime soon if the bearish pressure sustains but a significant drop below $150 is also out of the picture.
