With bitcoin getting the limelight, many crypto tokens, including its hard forks, have taken a back seat. Bitcoin SV, in particular, is not garnering all the attention it deserves, mostly due to the leading cryptocurrency’s hyper bullish sentiment but also partly due to Craig Wright’s publicity stunts. The founder of the latest bitcoin fork has claimed that he is the mysterious Satoshi Nakamoto.
As a result, investors are distracted and many fail to see the tremendous bullish potential of Bitcoin SV. This is good news for those who focus on the price action because the charts tell us that the cryptocurrency could rip by over 100 percent within three months.
Bitcoin SV is a relatively new cryptocurrency. It was released at the height of the crypto winter in November 2018. The crypto token recorded an all-time high of $254.13 on November 14 last year. However, there was no escaping the overall bearish sentiment and Bitcoin SV eventually dropped to $38.528 on November 23. That’s a deep dive of over 84 percent in less than two weeks.
Nevertheless, the cryptocurrency quickly stabilized as it traded within a wide range between $105 and $50. BSV spent over six months building a base within this range. Then on May 26, bulls took control of the market.
A look at the daily chart shows that Bitcoin SV has broken out of an Adam and Eve double bottom pattern after half a year of range accumulation. The move triggered a massive rally that catapulted the cryptocurrency to as high as $254 on May 30. More importantly, the breakout marked the end of base building and the beginning of the bull market in the short-term.
A massive breakout that more than doubles an asset’s price often leads to consolidation rather than a correction. In such cases, the strength of the breakout is maintained in spite of heavy profit-taking. That’s exactly what we’re seeing in Bitcoin SV.
The cryptocurrency increased by over 141 percent in less than a week after it breached resistance of $105. As expected, those who bought at the bottom took heavy profits. Nevertheless, Bitcoin SV kept its bullish tone as it built new support at $180. With this price action, the crypto token consolidated while it painted a large bull flag on the daily chart.
Based on the height of the pattern, Bitcoin SV could target $375 once it breaks out of the bull flag. That’s a rise of over 84 percent from the current price of $203.
However, the bull flag appears to be one of the two continuation patterns that can be seen on the daily chart. If you zoom out, you will notice that Bitcoin SV is also brewing a gigantic cup and handle pattern with a neckline at $240.
Based on the height of the pattern, a breakout could launch the market to as high as $430 for a 110 percent increase from current prices.
According to this assessment, Bitcoin SV would be a good buy once it breaks out of $240 resistance and retests the price area as support. The minimum target is $375. Above that, the next target is $430.
Bitcoin may be getting all the attention now but it probably won’t be long until Bitcoin SV steals its thunder.
Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice.
Last modified: May 20, 2020 12:30 PM UTC