Bitcoin SV (BSV) has been on an insane uptrend in the past week or so climbing to all-time highs of $455 USD on Tuesday this week. However, the soar in BSV’s price has since been cut short with bears coming into the market strong as price plummeted to $284.56 USD, as at time of writing, representing a 45% drop in the past 48 hours.
Moreover, the sharp rise on the Coinmarketcap listings to fourth has not lived past a day as the coin dropped back to fifth and looks set to drop further following the 17% drop in total market cap in the past 24 hours. In this article we highlight some of the reasons why BSV’s price fell and possible rationales that signal it’s headed back to sub-$200 USD levels in the near future.
1. No supporting liquidity in the market
The sharp rise to $455 USD was never to be sustainable and a quick look at the BSV market would give a direct indication why. First, the inflated trading volumes were never supported by the liquidity in the market. At the height of the bullish momentum on January 15th, the total volume traded stood at $7.5 billion USD in a day with the market capitalization at $7.3 billion USD, signaling manipulation in the market.
During the current downtrend, nothing seems to have changed on the liquidity as exchanges record a mere $1 or less in liquidity despite showing hundreds of millions in volume traded daily. Peep the chart below.
2. BSV/USD price crosses below the 50 MA line
On the short time frame charts, the capitulation and start of a possible push to sub-$200 US support levels is underway as the price crossed below the 50MA line. Currently switching hands at $292 on the dollar, BSV bulls are struggling to push the price past the 50 MA line, which provides resistance. Since crossing below the psychological support in the early morning hours in the Asian market, bulls have tried effortlessly to break past $300 USD but to no avail.
Furthermore, the higher timeframes show an exhaustion of bulls as the relative strength index (RSI) broke below the overbought levels support and is currently oscillating at 67 with a bearish projection in the near term.
With the Bitcoin community rallying against the Bitcoin spinoff, there seams to be only one way BSV market will move, down! It’s a matter of time before the bears breach below the $200 psychological support level.