By CCN: Price of Bitcoin SV (BSV) is showing the first signs of significant downside correction after rallying more than 300-percent over the last two weeks.
The BSV-to-dollar exchange rate today dropped close to 10-percent to establish $194.23 as its intraday low on BitFinex. That brought the pair 23.13-percent down from its lately-achieved peak of $254. Meanwhile, against its rival bitcoin, the cryptocurrency was down close to 14-percent, per the data provided by CoinMarketCap.com.
The market did not offer any concrete fundamental to explain why Bitcoin SV’s uptrend weakened. Nevertheless, the asset dropped more under the influence of a market-wide sentiment, which saw all the leading cryptocurrencies either lower or adjusting their interim bias to sideways. Bitcoin, which until June 4, had retraced by more than 18.43-percent against the US dollar, pursued a weak pullback to the upside in the last 48 hours, rising a mere 2.84-percent.
At the same time, Ethereum also surged close to 2.9-percent in a very similar pullback action.
As CCN covered earlier, the Bitcoin SV’s 300-percent price rally appeared like a well-orchestrated pump action driven by a series of fake and misleading news.
At first, the Bitcoin SV founder, Dr. Craig S Wright, filed a copyright claim over the Bitcoin’s original whitepaper, which his associate Calvin Ayre later propagated as proof that Dr. Wright is Satoshi Nakamoto, the original creator of bitcoin. The US Copyrights Office later clarified that they didn’t verify Dr. Wright’s claim; they just registered it.
In another event that took place amidst the Bitcoin SV price rally, scammers impersonated a Chinese news website to spread fake news. They stated that Dr. Wright moved bitcoins from the wallet that belonged to Satoshi Nakamoto to Binance, an exchange that earlier delisted BSV.
Vitaliak Buterin, the co-founder of Ethereum, yesterday called Bitcoin SV a “complete scam,” reiterating his views from December 2018 in which he criticized Dr. Wright’s blockchain project for stupidly increasing the block sizes to 128 MB.
The comments may or may not have influenced the day traders to spot short opportunities in the Bitcoin SV market. But the fact the BSV dropped hard against both the US dollar (or stablecoin USDT) and bitcoin indicated that people are ready to squeeze out their weekly profits and move towards cryptocurrencies having better fundamental backings.
It could mean a potential dump in the medium-term, providing the shady nature of BSV’s upside action.
The Bitcoin SV price is now testing $186 as its interim support, while $229 to the upside is acting as resistance. There is a strong likelihood for BSV to continue test $186 for a potential pullback. Accompanied by a rise in trading volume, the bounce back could open a decent long opportunity towards $208, while eyeing $229 as an upside target. At the same time, BSV breaking below $186 would have the price retesting the next support to as far as $159.
Click here for a real-time Bitcoin SV price chart.
This article was edited by Samburaj Das.
Last modified: June 6, 2019 09:38 UTC