The Bitcoin SV posted an impressive rally during the trading session on Thursday but found enough resistance at a higher high formation. The coin briefly surpassed Binance Coin to claim its 10th top cryptocurrency spot but retraced back to 11th position due to weak upside momentum with a current market cap of $1.1 billion.
The Bitcoin SV-to-dollar exchange rate (BSV/USD) established a new intraday high at 70.526, up 13.62% from the day’s open. However, the pair remained on the defensive as the continuation of a long bearish move prompted a downside correction action. It revisited 62.131, a support level from January 29 trading session, for a potential rebound. But, a less buying enthusiasm allowed Bitcoin SV to consolidate ahead of the US session open.
Ever since correcting lower from its all-time high at $134.368 on BitFinex, Bitcoin SV has been trending inside a descending channel, formed by two negative sloping trendlines in the chart above. It appears that traders are making bets inside the channel – they are entering long positions towards the 50-period moving average in blue while setting a breakout target towards the descending channel resistance. Conversely, traders are also opening short positions towards the channel support on a pullback from either 50-period MA or channel resistance.
However, the ongoing BSV/USD behavior is reminiscent of the price action noted between January 11 and January 13. The pair rallied towards the channel resistance, pulled back, and is now consolidating below 50-period MA.
Expecting the traders’ sentiment to stay intact, we can assume that BSV/USD would flirt with 62.131 as its newfound support. However, a break below the floor would take the pair towards the channel support – an ideal short target. From there, the price would eye another rebound, this time setting high targets towards the 50-period MA.
Not to mention, maintaining a stop loss order against the direction of positions would minimize losses if the trend reverses.
Of course, the theory is entirely based on the recent price movements of Bitcoin SV. The author advises discretion.
The only major news that coincides with the Bitcoin SV rally comes from Exodus. The crypto wallet service announced Wednesday that it had added BSV token support on its platform.
“If you held Bitcoin Cash in Exodus before November 15, 2018, and you did not send your BCH out of Exodus after this date, you may be entitled to claim Bitcoin SV (BSV),” read the announcement.
This post was last modified on (Eastern Time): 07/02/2019 09:57