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Bitcoin SV

Analysis: BSV Is Up 500% Thanks to Wash Trading

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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

genius” strategy to push the price of BSV up with “essentially no downside.” The delisting of BSV across multiple exchanges could have enabled such obscure practices, according to Armani. 

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. 

BSV/USD by TradingView

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. 

BSV/USD by TradingView 

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.

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Bitcoin SV

Bitcoin SV rally has reversed as it was based on shaky foundation

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  • Bitcoin SV rally might have been caused by dormant accounts.
  • BSV/USD has retreated from the recent highs amid technical correction.

Bitcoin SV has been all over the place since the beginning of January. Craig Wright’s saga set the speculative ball rolling, while pump created by lo liquid exchanges helped to create a FOMO (Fear of Missing Out) and push the coin from $116 to above $458 in a matter of four days. 

Another take at BSV rally

Analysts of Amun Research pointed out to network fundamentals that might have caused BSV rally among other reasons. Thus, the research revealed that the spike might have happened due to a large number of dormant accounts. The experts found out that a lot of BSV holders did not have access and not claimed their coins since they obtained them. 

Also, they estimated the average time investors had held onto Bitcoin and BSV, before initiating a transaction. This metric is known as “Dormancy” allows evaluating the holding habits of BSV investors.

At turned out, BSV was held for 13 days on average, which is longer than Bitcoin’s eight days. 

“All things being equal, the higher the dormancy the older coins are being transacted on that day for BSV than BTC, which in turn means that longer-term investors of BSV are releasing their coins into circulation at a higher rate than that of BTC currently.”

BSV/USD: technical picture

The coin has recovered from the intraday low of $275, the market is still dominated by bearish sentiments as long as the price stays below $300. This psychological barrier is reinforced by SMA50 4-hour and the upper line of 4-hour Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on $330 ( the upper line of 4-hour Bollinger Band) and $400.

On the downside, a sustainable move below the Asian low of $275 will open up the way towards the recent recovery low of $236 hit on January 19. If it is broken, a psychological $200.00 will come into focus.

BSV/USD 4-hour chart

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Bitcoin SV

Bitcoin SV Price Analysis: BSV/USD continues to surge up, $350 in sight once again

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  • BSV/USD went up from $250 to $316 over the last four days.
  • BSV/USD has already charted the golden cross pattern in the daily chart.
  • Craig Wright revealed that he has gained control over his Bitcoin holdings.

BSV/USD daily chart

BSV/USD daily chart

BSV/USD is well on its way to charting a fourth straight bullish day. Over the last four days, the price spiked from $250 to $316, which is a 26.4% increase in price. The bulls will definitely aim to re-enter the $350-level. The 20-day Bollinger band has widened enough for BSV/USD to go

up to the $400-region without being overpriced. The increase in price seems to be purely news-driven. Bitcoin SV’s Craig Wright who has been fighting for custody over his Bitcoin holdings against the estate of his deceased partner, Dave Kleiman. 

Wright recently informed the United States District Court of the Southern District of Florida that he has gained control of the private key needed to unlock the encrypted that contains a full list of his Bitcoin holdings. Wright told Cointelgraph:

I’m 99.9999 and a few more 9s percent certain that I will be taking control of my BTC and whatever else.

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Bitcoin SV

Bitcoin SV Recovers Smartly after A Sharp Fall

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Bitcoin’s most controversial fork Bitcoin SV (BSV) recovered smartly after crashing by 17% yesterday. The coin’s fall coincided with a legal case related to one of its main proponent’s Craig Wright.

Failure to prove things

Craig Wright is one of the most polarizing figures in the cryptocurrency industry. He has frequently called himself the real Satoshi Nakamoto, a claim that several other big names in the industry have trashed since then. He recently failed to prove that he has private keys that give him access to about $9 billion worth of Bitcoins.

Bitcoin SV Drops after Craig Wright Failure to Prove His Ownership of Private Keys

Wright previously promised to prove that he is Satoshi Nakamoto, the famous yet anonymous creator of Bitcoin. He said that he controls the funds that should ideally belong to Nakamoto. After he made these promises, Bitcoin SV’s price started moving up and reached an all-time high of $436.

Wright brought his evidence as a “bonded courier” but his lawyer said that it didn’t contain any information related to private keys. Andres

Rivero, his legal counsel confirmed, “The file that he’s received did not include private keys,” which led to a big letdown in the coin’s price. Interestingly, the coin started falling even before the lawyer confirmed this information. It fell 40% from its peak on January 15 to $262.

Bitcoin Cash moves up

After the inglorious fall of Bitcoin SV, Bitcoin Cash (BCH) is the fourth-largest cryptocurrency in the market again. Bitcoin SV has slipped to number 5. Note that Bitcoin Cash and Bitcoin SV are forks of the original Bitcoin Cash blockchain. Bitcoin SV’s fortunes now seem tied completely with the debate that Wright is the real Nakamoto.

Bitcoin Cash, on the other hand, is moving ahead with its development which has helped it remain relevant in the market. While BSV was falling, BCH gained 7%. Last year, several crypto exchanges removed Bitcoin SV from their platform, which shows a lack of trust in the project.

Dash (DASH) which gained steam unprovoked alongside BSV lost its steam. Its price dropped 15%.

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