Bitcoin SV has formed lower highs to trade below a descending trend line visible on the 1-hour chart. However, the sharp pop higher from the recent lows and the latest set of candlesticks suggests that bulls could keep charging.
The 100 SMA is below the longer-term 200 SMA for now, to indicate that the path of least resistance is to the downside. This suggests that selling pressure could keep on and that resistance is more likely to hold than to break. However, the price is now above the 100 SMA dynamic inflection point as an early indicator of buying momentum.
Price would need to bust through the 200 SMA dynamic resistance just above the falling trend line next in order to confirm that bullish traction is taking hold. From there, Bitcoin SV might test the next area of interest at the former support of $73.
Sustained bullish momentum could carry it up to the next support turned resistance level at $84.50. However, RSI is already turning lower from the oversold region to signal that bears are returning. Price could follow suit as the oscillator moves further down. Similarly stochastic has climbed down from the oversold region to signal a return in selling momentum and a possible dip to the swing low again.
Many worry that the gains might be short-lived as there have been accusations of market manipulation when an unconfirmed illegal picture was floated on the BSV blockchain.
CEO of nChain and Founding President of the bComm Association Jimmy Nguyen explained that Bitcoin SV is a ledger of information that can anyone to post anything, adding:
The same is true for the Internet, and is true for the Bitcoin Core (BTC), Bitcoin Cash (BCH-ABC), Ethereum, and other cryptocurrency networks—on which illegal content likely already lives.
Nguyen concluded by saying that the BSV ecosystem’s ethos encourages legally-compliant business action and that BSV applications will take “actions which foster a safe blockchain ecosystem—while also taking advantage of the technological power of a BSV blockchain with no limits.”
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