Home / Analysis / Crypto / Technical Analysis / Bitcoin SV Breaks $40 Resistance — Can BSV Close the Year At $50?

Bitcoin SV Breaks $40 Resistance — Can BSV Close the Year At $50?

Published October 19, 2023 1:25 PM
Nikola Lazic
Published October 19, 2023 1:25 PM

Key Takeaways

  • BSV rose by 60% from its August 17 low.
  • Overcoming the $40 resistance.
  • Chart analysis points out a potential major upturn.

BSV’s price,

having previously bottomed out at $26 on August 17, is once more testing the $40 resistance. A previous attempt on July 2 faced a swift rejection.

A subsequent push on October 2 encountered resistance, causing the price to retreat to $32. Now, with its third attempt, the pressing question is whether BSV can establish a position above $40 and aim for the $50 milestone.

BSV Price Analysis

Starting at its high of $483 on April 16, 2021, BSV entered a protracted decline, forming a descending channel. This downward path reached its nadir at a bear market low of $18 on June 10.

BSV in an uptrend
BSV in an uptrend

 

A notable resurgence ensued, with BSV skyrocketing by 205% to reach $56 by July 2, marking its initial breakthrough of the $40 resistance and suggesting the possibility of a bullish reversal.

On the daily chart, there’s evidence of a U-shaped pattern, characterized by a series of higher lows following the dip on June 10, a formation often associated with market bottoms. Given the current strong bullish momentum, there are strong indications that BSV may be entering a significant new bullish phase.

With the price now exhibiting robust bullish momentum, it seems that BSV is potentially commencing its next major bullish cycle. In such a scenario, it’s crucial for the price to maintain levels above the $40 resistance and ideally continue its upward trajectory for a more substantial advance. The next key horizontal resistance stands at $50, but if this indeed marks the start of the next major bullish cycle, further gains beyond the July peak are likely.

BSV 4h chart
BSV 4h chart

Diving into the 4-hour chart and delving deeper into the wave structure, it becomes apparent that if the initial upward movement, leading to a spike at $56 in July, represented the first wave of the initial impulse, the subsequent retracement found support at the 0.786 Fibonacci level on August 17 at $26.

However, following this wave count, the current uptrend from the low in August is considered as wave 3 of a higher degree, suggesting the potential for a significant rise to $89 and potentially beyond to $115.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

Was this Article helpful? Yes No