After a week of battling to regain position above $200 effectively, Bitcoin SV’s price finally gave in to the pressure of the bears as the collective crypto market fell. For BSV, it felt almost expected as the asset declined by 13 percent over the past day. The token also dropped in the rankings and is currently placed 12th in the charts with a market cap of $2.9 billion.
Bitcoin SV 1-day chart
Before the collapse took place in the charts, Bitcoin SV actually facilitated a pattern with bullish implications. A falling wedge can be observed but the turnaround was extremely bearish as the asset dropped below its long-term support at $165. Bitcoin SV hadn’t dipped below $165 since July 6th, other than a brief re-test on July 16th. It was mentioned above that the price slump was expected and it was due to the movement of the 50-Exponential Moving Average. Since the 3rd week of August, the 50-EMA had been acting as a strong-overhead resistance, putting in heavy bearish pressure. The asset wasn’t able to close a position above the 50-EMA throughout the week and it finally collapsed 24-hour back.
At press time, after coming in close proximity with the oversold zone, BSV should be able to consolidate between $165 and $150 for a period of time. Further corrections will push the price down to post March collapse levels, and it will be extremely difficult to recover from that point.
Bitcoin SV weekly chart
The weekly chart gave out a broader perspective and suggested that the overall trend was never exactly bullish for Bitcoin SV as the asset hardly broken above its weekly resistance at $258 during the August rally. Since topping off at $400 during early January, the asset has majorly maintained sideways movement between $258 and $144. The symmetrical triangle pattern suggested a major breakout is foreseeable later in 2020.
VPVR suggested that maintaining a price above $194 is bullish in the long-term for Bitcoin SV but covering that price gap at the moment, is a task next to impossible.
Bitcoin SV will consolidate between $165 and $150 for the next week.