It is an interesting period in the digital asset industry. While prices were indicating a series of pullbacks, many suggested that the bottom is near or possibly nearing with time. At the moment, Bitcoin continues to hold fort around the $10,000 range, bouncing consistently from the $10,200 mark.
With the king coin holding its grounds, altcoins around are being resistant to more corrections as well. After declining to $144 on 21st September, BSV is up to $155 at the moment. With uncertainty still looming large, we analyzed possible outcomes for the Bitcoin forked asset.
Bitcoin SV 4-hour chart
Source: BSV/USD on Trading View
The massive drop down to $144 came at the back of a symmetrical triangle for Bitcoin SV. With high bearish momentum tracking the pattern, it was somewhat obvious that the asset declined in the charts.
At the time of writing, the bearish pressure from the 50-Moving Average was also dominant, hence a re-test at $165 might take a bit of time. Coincidentally, BSV‘s price is oscillating within another bearish pattern at the moment, with a rising wedge taking the proceedings.
At the moment, if the bears take charge of the moment, a strong correction could take the price to the last support at $136, while a normal retracement can be expected till $150 before another rally upwards. Relative Strength Index or RSI was observed to exhibit a decline which meant selling pressure was slowly building up again.
Bitcoin SV 1-day chart
Source: BSV/USD on Trading View
However, the 1-day chart gave more clarity on the current price range. Since the start of April 2020, Bitcoin SV‘s value has almost used the $150-$160 range as a medium to consolidate before catapulting above the $200 mark. It is interesting at the moment because after reaching $144 only 3 days back, the asset back in the range now.
Now, optimistically the price might rocket out again from here, but it is important to remember that during the previous two proceedings, the market was riding on a high. At the moment, an air of transition enveloped the industry. Stochastic RSI suggested another bearish crossover is approaching. With the blue line currently reaching the overbought zone, a direct crossover at the top would lead to another pullback.
Right now, another re-test till $150 seems definite but it will be interesting to see if this range can be held yet again.