Craig Wright has been in the spotlight after losing a legal case against Ira Kleiman yesterday. Wright was ordered to turn over half of his Bitcoin holdings—worth over $5 billion—potentially tanking BTC. However, the effects on his pet project, Bitcoin SV, are not quite as clear.
Bitcoin SV technical analysis
The recent ruling in favor of Ira Kleiman has not significantly impacted the price of Bitcoin SV. Although BSV had a 6 percent downward impulse after the news broke, it has since managed to fully recover.
Based on the 3-day chart, BSV is sitting on top of its 50-three-day moving average. This moving average has been able to hold the price of Bitcoin SV from a further drop on six different occasions since mid-July, 2019.
As a result, it seems the support’s strength is weakening over time. The more times a support level is tested the weaker it becomes and the higher the probability it will break. If BSV breaks below the 50-three-day moving average then it could try to test the next level of support at $106 and $85.50.
Nonetheless, the TD sequential indicator gave a buy signal in the form of a red nine that would be validated if Bitcoin SV moves above the 7-three-day moving average. This technical index predicts three-to-twelve days of upside momentum. If volume starts picking up and the buying pressure behind this cryptocurrency increases, then it could test the resistance given by the 30-three-day moving average that sits around $160. This will represent a 20.50 percent upswing from current price levels.
It is worth noting that the last time the TD sequential indicator gave a buy signal in the form of a red nine on the 3-day chart was on July 21, 2019. The bullish signal was invalidated as a red two candlestick began trading below a preceding red one candlestick. This led to multi-week correction that took BSV down nearly 34.50 percent.
Due to the opposing views seen on the 3-day chart, the Bollinger bands on the 1-day chart could bring more clarity to the short-term future of BSV. Under this time frame, the Bollinger bands appear to be squeezing. Squeezes are indicative of periods of low volatility and are typically followed by periods of high volatility. The longer the squeeze the higher the probability of a strong breakout. Thus, the range between the upper and the lower Bollinger band is a reasonable no-trade zone.
A break below $127 could lead to a drop to the $106 support level. Meanwhile, a move above $146 could take BSV to test the resistance given by the 30-three-day moving average seen on the 3-day chart.
However, the descending parallel channel that is developing on the 12-hour chart could pose a threat to the bullish outlook. This technical pattern has been able to contain the price of Bitcoin SV inside two parallel lines for over a month. For this channel, every time BSV reached the bottom of the channel it goes back up to the middle or the top and when it hits the top of the channel it goes down to the middle or the bottom.
Now that BSV seems to be going up to test the top of the descending parallel channel, it could find a great deal of resistance and retrace to the middle of the channel. Dropping below the middle line of the parallel channel could validate the bearish outlook leading to 16.50 percent correction.
Overall Sentiment
Based on longer-term timeframes, the sentiment around Bitcoin SV is neutral. A break below the 50-three-day moving average or above 7-three-day moving average could hint where this cryptocurrency is heading next, as seen on the 3-day chart.
As the news about BSV’s creator Craig Wright losing the Kleiman case continues to be analyzed a lagging impact on the cryptocurrency could unfold. But, so far, it seems like the market price of BSV will not be affected as a direct result of the ruling—at least not until either Wright or Kleiman are compelled to sell their holdings.
The post Will Bitcoin SV drop following the Craig Wright v. Kleiman ruling? appeared first on CryptoSlate.
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