- Bitcoin SV is the best-performing altcoin out of top-100 on Tuesday.
- The price manipulations may have caused a sharp growth of value.
Bitcoin SV, a coin that forked from Bitcoin Cash in 2018, has gained over 44% in recent 24 hours and hit the intraday high at $246.00, which is the highest level since July 2019. The coin is the biggest winner of the day out of top-100, however, the true reason for the pump remains unknown.
Notably, in the recent four days the coin has gained over 120% and ousted Litecoin from the 6th position in the global cryptocurrency market rating compiled by CoinMarketCap.
At the time of writing, BSV/USD is changing hands at $236.00 amid strong bullish pressure and high volatility. The cryptocurrency experts tend to believe that the sharp price increase is a pure speculative development.
Sid Shekhar, the co-founder of data researcher TokenAnalyst, said in the interview with Bloomberg:
“Some folks say it is a reaction to Craig David Wright submitting more documents to the court — but it seems like a coordinated pump more so than a genuine market reaction to positive news.”
If this is the case, the severe dump will eventually follow the pump as the only aim of this activity is to manipulate the price and benefit at the expense of other traders.
BSV/USD daily chart
Bitcoin SV’s Insane Price Week: The good, The bad and The Ugly
The value of the cryptocurrency continued to climb over the next couple of hours and by January 15, the price had jumped from a steady $170 to $311.
The previous week was something of an anomaly for Bitcoin SV, with the cryptocurrency skyrocketing like never before. This shoot-up occurred just as the rest of the cryptocurrency market also got wind of a bullish run.
Let us now look at how fantastic the journey was for Bitcoin SV and make more sense of the flippening that took place.
The Price Hike Origin:
On January 14, Bitcoin SV’s price started climbing up the chart at a rate that was similar to the ones triggered by Bitcoin’s climb. The value of the cryptocurrency continued to climb over the next couple of hours and by January 15, the price had jumped from a steady $170 to $311.
The All-Time High Moment:
This continued to be the price hold for some more time and then Bitcoin SV witnessed its biggest jump. In a matter of hours, BSV went from $330 to $435.72. This perpendicular climb sent the entire cryptocurrency market into a frenzy with many calling BSV the next big thing. Compared to other cryptocurrencies climbing on the charts, BSV was one of the few enjoying double-digit growths along with Litecoin.
The eight percent jump in such a short span of time also resulted in some members of the community calling BSV a ‘bubble’. The BSV supporters were, however, focused on the ‘flippening’.
Ever since the hard fork that resulted in Bitcoin Cash and Bitcoin SV, both its communities have been at war against each other. BCH has always stayed above BSV on the price charts and supporters of the latter always believed
The moment actually occurred on January 16 when Bitcoin SV’s growth finally surpassed that of Bitcoin Cash near the $320 mark. BSV communities erupted in joy as proponents such as Calvin Ayre, Craig Wright, and Samson Mow reaffirmed that it was the real Bitcoin.
What has happened since then?
As communities rallied behind BSV, some other members continued to state that the price rise would be short-lived. That was exactly what happened when Bitcoin’s price started falling. Bitcoin continued to collapse by 18 percent on the 24-our time frame while some alts rallied. During this time, Bitcoin SV crashed by 40 percent from its local peak causing many to panic.
At press time, BSV was trading for $263.5 with a total market cap of $4.8 billion. It had also ceded the 4th place back to Bitcoin Cash which was trading for $365.46. BSV’s 14.7 percent dip on the daily chart also caused its 24-hour market volume to fall to $3.46 billion.
The inconsistency of the altcoin market was also pointed out by several analysts in the digital assets space. Nicholas Merten, a popular crypto analyst had tweeted on January 15, saying:
“Ignore the price moves of $BSV. Only $35.6M of the volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.”
Many others have also echoed this concern, asking communities to just focus on logic and developments rather than just numbers. Bitcoin SV may have gone through an ‘irrational’ surge over the past week, but people who made profits surely would not have cared.
Analysis: BSV Is Up 500% Thanks to Wash Trading
Bitcoin Satoshi’s Vision (BSV) entered a massive bull rally which saw the coin’s price increase by 5x. As the crypto community questions the sudden upswing, a technical pattern estimates that BSV is bound for an inevitable correction.
Market Manipulation or Legitimate Demand?
On Dec. 18, 2019, BSV appears to have reached a market bottom at a low of $77. Since then, it skyrocketed approximately 500%.
BSV climbed up to a high of $459 on Jan. 14, 2020 and moved up to the No. 4 spot on CoinMarketCap’s top cryptocurrencies by market capitalization.
Even though other cryptos have also moved up significantly, the founder of DataDash Nicholas Merten believes that BSV’s rise was mainly triggered by wash trading.
“No one but Calvin [Ayre] is mining BSV. Adding more hash doesn’t get him more BSV. So, he deploys hash on BCH [Bitcoin Cash] a couple weeks ago (unknown miner with like 60%). He then takes the BCH and sells it for Tether. Then waits for some bullish momentum and starts wash trading BSV/USDT on shady exchanges which currently account for the volume. He can put in asks all the way up to the price he sold the BCH for and lose nothing.”
Armani added that this is a “pretty
Regardless of the reasoning behind the rally, BSV seems to have reached an exhaustion point.
Thus far, it has retraced over 9% in the last 24 hours, but a peculiar technical pattern forecasts a steeper decline.
BSV Technical Analysis
A head-and-shoulders pattern appears to be developing on BSV’s 1-hour chart. This technical formation estimates a trend reversal from bullish to bearish. A move below the $320 support level, also known as the neckline, could signal a sharp decline which will need to be confirmed by a large spike in sell orders.
The bearish pattern projects a 29.50% downward movement that could take BSV to $227. This target is determined by measuring the distance between the head and the neckline and adding it to the breakout point.
Nonetheless, If BSV is able to close above the right shoulder at $392, the bearish formation will be invalidated.
Closing above this significant level of resistance could increase the odds for a further advance. An increase in the buying pressure behind this cryptocurrency could allow it to surge to the next levels of resistance at $459, $543, and $588.
Due to the controversy behind BSV’s price action, trading the coin poses a significant risk for investors. It would be highly advisable to remain cautious about what could be another scheme from the Ayre playbook.
Bitcoin SV steadies near $170 after gaining nearly 50% on Friday
Bitcoin SV (BSV) gained nearly 50% on Friday and advanced to its highest level since July after news of Craig Wright submitting legal papers in a court case to reveal that he is managing a trust called ‘Tulip Trust III,’ which reportedly holds up to $10 billion worth of Bitcoin, created speculation that Wright could
BSV rose from $115 to $175 in a single day and now seems to be staying in a consolidation phase near $170. Investors will be keeping a close eye on fresh developments surrounding the self-proclaimed Bitcoin creator Craig Wright. The fact that the pair hasn’t yet staged a deep correction supports the view that investors are staying on the sidelines for the time being.