Bitcoin SV Moves from Consolidation to Consolidation

However paradoxical it may sound but right now, the forks of Bitcoin are actually doing relatively better in terms of price action than their forefather. Take Bitcoin SV, for instance: despite all the controversy that surrounded this coin with regard to the infamous Craig Wright legal case and the market crash, the 6th cryptocurrency managed to retain the yearly level of profitability at 153% against USD and even provided a 64% better yield than Bitcoin.

Favorable showings but no bursting price action to be expected

Even though many had been predicting that the soaring price of BSV in the first month of 2020 was fueled by the hype generated by the mentioned court charade, the coin itself proved them wrong by consolidating steadily around the $275 before being kicked in the gut by the fast, though expected emergence of global economic crisis. 

1-day BSV/USDT chart

But even though the price slump on March 12-13 might have seemed as unexpected and abrupt, it had actually fallen perfectly in line with the macro downtrend, which had been pulling the price back to the target area at $169 - $170, from which the price pump began. That particular level coincides with probably the largest money infusion that the coin ever experienced; therefore, the logic dictates that a big player that stood behind this move would have wanted to close his positing around the same level after the price made a spectacular arc during the 60-day cycle.

The consolidation that followed the nosedive to $80 was necessary for the market participants to come to their senses and begin taking up new positions. That process lasted for about a week, upon which the price made a powerful leap through the roof of the descending channel at $138, and entered the phase of the second consolidation without even retesting the prior level of support, which speaks of the bullish intentions, at least for the time being.

What’s interesting, though, is that the present consolidation area is congruent with the pre-pump area, which proves the notion that such levels usually serve as strong price magnets. In any case, BSV is now looking for an exit from the ascending wedge, most probably to the upside, given that the price will have finalized the morning star pattern on the daily time frame. However, this could prove to be troublesome since the trading volume in recent days has been mild, with no signs of big money entering the market.

Nevertheless, MACD is still on the rise after bottoming out from -40 and forming a bullish crossover - both moving averages are far away from each other, so a move to the zero line appears to be feasible. This should be enough for BSV to burst out of the wedge and establish new support above $170.

That move would be accompanied by the temporary penetration of the 50-period exponential moving average, which is now approaching the price action range. In the current circumstances, the bulls won’t be able to push through that barrier, so the consolidation zone of Bitcoin SV for the next seven to ten days should be between $168 - 192, which is a relatively comfortable range for scalping.

Author: Alex Paulson for Crypto-Rating.com