Disclaimer: The findings of the following analysis is the sole opinion of the writer and should not be taken as investment advice
The Bitcoin SV market has been highly correlated with the Bitcoin market and the current price has been moving in accordance with Bitcoin. Although the market did not mirror the exact rally in the BTC market, it was still moving higher and with less volume.
BSV four-hour chart
Source: BSVUSD on TradingView
BSV’s chart indicated sideways movement for the coin’s price. Despite volatility in the crypto market, Bitcoin SV’s price has not seen drastic change. At press time as the price of BSV was close to testing resistance at $171, while being traded at $168. The market was experiencing immense buy pressure at the time of writing.
Reasoning
The Relative Strength Index has been inching closer to the overbought zone as buyers flood the BSV market. As the coin manages to surpass the current resistance, the RSI may end up in the overbought territory which might trigger selling pressure.
At the same time, money has been flowing into the market drastically. The Chaikin Money Flow was noted to be above the zero-line and was indicating strength in the market. It broke past the resistance and has continued a spike upwards confirming the bullishness in the CMF market.
Position
Entry: $167.50
Stop-Loss: $171.403
Take-Profit: $161.36
Risk-to-Reward: 1.57
Conclusion
The upwards movement of BSV may be restricted in the long-term. The indicators have been projecting large-scale buyers in the market, however, it might get saturated, resulting in the price of BSV to collapse. Although there is a bullish trend in the market, there could be a correction in the market coming soon.
