Bitcoin SV has posted a 291% year to date increase. But has the altcoin's luck run dry? Is BSV about to come collapsing down?
While 2020 is scheduled to be the year bitcoin blows-up, it seems a few traders didn’t get the memo—opting instead to pump derivative rival, Bitcoin SV. The bitcoin cash spin-off has posted a 291% year to date increase, but has its luck run dry? Is BSV about to come collapsing down? And is it time to go short?
That’s the opinion of most BSV critics today, of which there seems to be no lack of. The resounding consensus appears to be something along the lines of, ‘short it into the ground.’
One pseudonymous analyst, known as CryptoGainz, has advised exactly this, arguing that BSV bagholders are incapable of selling due to network congestion.
The hypothesis goes that due to a supposed blockage—resulting from the parabola of the past few days—investors are left stranded, and unable to unload. Consequently, once the network clears up, a mass scramble to realize profit could lead to a significant price crash.
One solution offered by the analyst was to hedge bets via shorting BSV futures—thus securing profits and mitigating risks.
It seems the analyst wasn’t alone. Over the past 24 hours, an abundance of traders have wriggled out of the woodwork to shout about shorting BSV.
In fact, right now, BSV/USD shorts on Bitfinex are at an all-time high.
But is shorting really the best idea?
Speaking to CCN, eToro’s senior analyst Mati Greenspan provided some sage advice, suggesting that things may not be as innocent as first assumed:
Proceed with caution. Use proper money management and diversification…We still don’t know who is doing most of the buying or how much they’ve got left to burn.
After the influx of short trades came an onslaught of liquidations as BSV refused to capitulate.
Currently, the market is oozing unpredictability. As a slight divergence from the norm, the latest price action has seen BTC and altcoins move in tow.
One prominent crypto commentator, Ran Neuner, even advocated for an alt season a few days prior to the majority of alt movement. The somewhat divisive host of Crypto Trader simply tweeted “Breaking News: It’s Alt season.”
At the time, this prompted a barrage of criticism.
Given the 20% boost to the total market cap of altcoins over the last few days, it’s hard not to agree with Neuner’s sentiment.
While many altcoins look intrinsically linked to BTC’s resurgence, bitcoin SV appears to be the only altcoin not latching to bitcoin’s coattails. It’s believed that the hard-forked token flew into this price frenzy due to news around its founder, Craig Wright. The self-declared bitcoin creator and BSV evangelist recently professed to be able to prove his claim to the crypto throne.
A long-fought and highly convoluted legal battle has forced Wright to demonstrate possession of Satoshi Nakamoto’s BTC fortune. Wright maintains that the private keys, which would grant him access to the funds, are already on their way, courtesy of a “bonded courier.”
The fallout of this “revelation” has seemingly ushered BSV to lofty heights; nevertheless, as Greenspan noted, not everything is always as it seems.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Sam Bourgi.
Last modified: January 22, 2020 11:38 PM UTC