Bitcoin SV (BSV) is currently one of the top gainers in the cryptocurrency market, as the price skyrockets by about 358.8% from last year’s crypto winter.
Read on as we take a closer look at the technical price patterns driving the BSV price.
If you are interested in reading previous Techincal Analysis please feel free to look through Bitcoin Technical Analysis May 2019.
BSVUSD: Weekly Chart
From the weekly time frame of the Bitcoin SV against the USD, a bearish accumulation pattern was signalled on November 19 ’18 with resistance set at 114.47 as the pair traded within the range of 114.47 and 38.528.
The bearish trend could not reach the support level before signalling a combination of regular bullish divergence and a breakout of bearish accumulation on May 13 ’19, setting support at 54.38 and 50.03.
BSVUSD: Daily Chart
Taking a step low on the time scale, the BSVUSD signaled a regular bullish divergence pattern in combination with a bullish accumulation pattern, as well as exiting oversold territory on April 27 ’19, followed by a decisive breakout of bearish accumulation on May 08 ’19.
The patterns got the pair set for a bullish price increase of about 311.6%, making the BSV one of the top gainers of altcoins coming out of the 2018 crypto winter.
A sudden increase in buying pressure forced the pair into overbought territory, thereby building confidence in the bulls to scale into their existing long positions on May 26 and 28 via bullish Fakey and bullish accumulation patterns.
Towards the last days of the month of May, the Bitcoin SV experienced a colossal price decline, which resulted in the pair closing bearish and signaling a long wick outside bar candlestick pattern, returning the pair to the overbought area.
Such events like this are the reasons why we strongly recommend trading with a trailing stop-loss order on margined accounts.
BSVUSD: 4Hour Chart
Those who entered a buy order at the bullish accumulation pattern on May 26 ’19 11:00, with support at 104.14 would have made about 118.0%, or better still, a risk to reward ratio of 6.0 considering the risk of approximately 15.93% compared to a potential reward of 118.39%.
The BSVUSD price on May 30 ’19 03:00 experienced a bearish flash crash of about 80.5%, taking out all trailing stop-loss order or stop-loss orders from the earlier bullish trend. Later at the 11th hour of that day, the pair triggered a double bearish accumulation setup, which pushed the price one more bar down before setting up support at 171.22.
BSVUSD: 1Hour Chart
Let’s go way down to the intraday 1hour chart, where the pair signals a bearish trend, starting with a breakdown of hidden bullish accumulation on June 05 ’19 23:00, later entering and exiting oversold on June 06 ’19 13:00 & 14:00.
A hidden bearish divergence setup flagged on June 07 ’19 16:00 suggested a continuation of the bearish trend. However, we the pair now sits on the 188.296 support level and has not been able to move below the level.
Major Resistance Levels of Bitcoin SV (BSV)
114.470, 254.13, 254.0
217.510, 192.99, 209.0
Major Support Levels of Bitcoin SV (BSV)
54.0, 54.274, 54.737, 56.056, 85.338, 102.93
104.14, 102.93, 120.390, 175.0
188.0, 194.77, 192.35
Conclusion and Projection
At press time, the BSV price exits the overbought region as well as breaks below a bullish accumulation setup from a daily time frame view on June 06 ’19. From this point, the pair is expected to retrace the bullish price rally. A hidden bullish divergence of the Relative Strength Index on the daily time frame should get the price back on the bullish path.