By CCN: It took Bitcoin SV just two hours grow its market valuation from $1.09 billion to $2.478 billion.
There are no clarifications about how the world’s eleventh largest yet controversial cryptocurrency managed to attract approx $1.4 billion. The move just happened out of thin air, as if somebody with a big bag of money – or even cryptocurrencies – was waiting to click on the big buy button. As of 1315 UTC yesterday, the BSV-to-dollar exchange rate had established its all-time high at $195 on Huobi, up more than 200-percent from the market open.
The price action surprised, partially because Bitcoin SV lately emerged as one of the cryptoverse’s most-controversial blockchain projects. The BSV creator, Dr. Craig S Wright, in April, dragged people who questioned his claims of being the bitcoin creator, Satoshi Nakamoto, to court. In a sign of protest, cryptocurrency trading firms ShapeShift, Kraken, and Binance delisted BSV, causing the price to crash by as much as 50-percent in just 20 days.
BSV had rebounded by up to 36-percent as of May 16 amidst a market-wide bullish sentiment. Nevertheless, the asset failed to overshadow its peers like bitcoin or ethereum in terms of long-term fundamentals. And suddenly, out of nowhere, it was 200-percent up on May 21.
The Bitcoin SV’s massive surge borrowed fat from a new bitcoin copyright registration filed by Dr. Wright with the US government. While such certifications are not much of a big deal, Dr. Wright’s associate, Calvin Ayer, projected it like a historic moment. The CoinGeek news portal founder said that their successful registration with the US office was proof that Dr. Craig S Wright is the real Satoshi Nakamoto.
“BSV doubled on Craig’s copyright news,” Ayre said. “This is only the start of him proving BSV is the only bitcoin. Now is a great time to convert all your other shite coins to Bitcoin.”
But the fact that Ayer overstated the truth could spoil the BSV bulls’ party. Having a copyright on the system does not entitle Dr. Wright with any exclusive rights on Bitcoin, a protocol which remains open-source under the MIT License. It loosely means, ‘you can take the code, twist it and make a new brand of it, but you can’t own the code, so eat $#!t, mate.’
It looks like big pockets artificially pumped the Bitcoin SV market to validate Ayre’s we-are-the-best rant. A 200-percent pump is seldom organic, which is why traders should restrain themselves from buying on higher highs – or even lower highs.
The Bitcoin SV price has corrected up to 53.09-percent upon establishing its historic high at $195 on Huobi. The hourly RSI projected BSV as an overbought asset, while the latest downside action somewhat neutralized the sentiment. Furthermore, the BSV price is now trending in what seems an unconfirmed bull flag. Intraday traders can locate a Long opportunity towards the upper trendline of the flag formation, while a Short entry towards the lower trendline upon a pullback further appears like a profitable opportunity.
The market bias is bullish at the time of this writing, with a majority of technical indicators signaling strong buying sentiment. Nevertheless, given the flawed fundamentals, a dump at this point of time should not surprise the market.
This article was edited by Samburaj Das.