- BSV has broken a weekly resistance zone.
- If it can stay above $102 this week, a move toward $150 would become more likely.
Bitcoin SV [BSV] has recorded excellent gains over the past week. It traded at $44 on 11th December and rallied to $108 on 29th December. This move measured 145.8%. On top of that, a weekly resistance zone was also broken.
AMBCrypto noticed a slight drop in the Open Interest on BSV contracts in the past few days. This meant that the bullish sentiment had weakened slightly. Could this see a larger retracement?
The $100 level was not just a psychological resistance
Source: BSV/USDT on TradingView
The one-day chart above noted that the market structure of BSV was firmly bullish. The RSI was well above 70, reflecting the momentum’s strength over the past week. The OBV also took a huge leap upward to underline the buying pressure.
The area from $91.5 to $102.1 was highlighted in red as it is a bearish order block on the weekly timeframe. Moreover, the $100 is also psychologically important. Therefore the move to $108 is significant.
If the bulls can defend the $100 level and push prices back above $108, it would suggest that the next move higher has started. The 23.6% Fibonacci extension level at $123 and the 61.8% level at $147 are the next targets.
The Open Interest decline could be a warning sign
Source: Coinalyze
The Open Interest chart is a good barometer of the market sentiment. In the past three days, despite heavy resistance around $110, BSV prices have pushed slowly northward. However, the OI has declined since 30 December.
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This indicated that sentiment was slightly in favor of the bears in the short term. Participants were not willing to bet on further price appreciation. The spot CVD also saw a dip.
Hence, a retracement into the weekly area of interest from $91.5 to $102 seems likely in the coming days. This could be followed by another move upward to $123 or higher.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
