What immediately stands out is the nearly 20% increase in price by Bitcoin SV. Is this increase the beginning of a new uptrend or is it just a retracement in response to prior moves? Let’s look at the price movement more closely to determine which is more likely.
Now that’s a pretty picture 😍👏🏼💕 pic.twitter.com/y0KWoW61zb— River (@riverish333) October 21, 2019
BSV Break-OutLooking at the daily chart, we can see that BSV reached a high in June and has been decreasing since. The decrease stopped at least temporarily once it reached the $85 support area. An interesting development is that the Oct 21 increase caused the price to break out above the descending resistance line. A breakout above resistance often means that an uptrend in a specific time-frame has begun. However, the price is still below the Sept 23 levels, when the latest breakdown occurred. Therefore, this is still a lower high in response to prior decreases.
Further Resistance AheadThe rally stopped, however, as soon as the price reached the $115 resistance area. This area is significant because it previously acted as support and coincides with moving average (MA) resistance. The long-term 100 and 200-day MAs have just made a bearish cross and are offering resistance to the price. A bearish cross of such long-term MAs often indicates the beginning of a long-term downtrend.
Future MovementLooking closer at the hourly chart, we can see that after BSV broke out from a symmetrical triangle and completed a five-wave upward move. Once it reached the resistance area, it created a double top and began to increase. This is a sign that the upward move has lost its strength and some retracement is likely. We would expect the price to retrace at least 50% of the move, finding support above $100, possibly decreasing all the way to the breakout level at $92. Do you think BSV has begun a new uptrend? If not, where will the price make a new low? Let us know in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.