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.
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