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Bitcoin SV Price Analysis: 19 January

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Source: Pixabay

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

Bitcoin SV’s price was stuck in a low volatility zone, with 4-hour candles varying between -3% to +3% returns. While the trend seemed to be continuing, BSV seemed to have retained its bullishness as well. With a 5% surge on the horizon, BSV looked set to hit a critical resistance level, breaching which would push Bitcoin SV up by 20 to 25% on the price charts.

Bitcoin SV 4-hour chart

Source: BSVUSD on TradingView

At press time, BSV was riding the inside of a rounded bottom with the price nearing the neckline. A breach and a successful retest of this neckline will push the price higher on the charts. However, until the neckline, BSV seemed safe for a quick 5% scalp. A breach of the neckline at $222 is the bullish confirmation needed for the next 20% to 25% surge.

The RSI indicator showed that there was more room for the price to grow, further confirming the move up to the neckline.

Further, the OBV indicator noted a lack of volume, which may be why the price was not volatile and was stuck with +/- 3% 4-hour candles.

Finally, the Stochastic RSI was in the overbought zone, suggesting that a quick reversal was possible for BSV. In this case, we can expect the price of BSV to hit the rounded bottom curve. A breach of this curve seemed like a possible scenario, and if this does come to play, we can expect BSV to test the inclined trendline which has been a strong support level since 11 January.

Conclusion

A surge above the neckline in the short-to-mid term looked unlikely, at least until the SuperTrend indicator was breached. Hence, a rebound into the rounded bottom pattern was more likely. The rebound will contribute to the formation of an ascending channel, one which also has a bullish bias. With the exception of the near-term bearishness, BSV looked ready for a 20% to 25% surge.

However, it is only possible if the SuperTrend and the Neckline levels at $220 to $225 are breached successfully. Alternatively, a dip below $182 will invalidate the aforementioned bullish scenario.


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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

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