BitcoinSV had another massive surge during the current intraday session. It is up by more than 17% at the time of writing. This comes after it started trading at $76 but had a small decline that saw it drop to $73. However, it rebounded and tested $95. Currently trading at $89, prices suggest that it retraced from its peak of $96.
A few hours ago, a report shed light on the reason for the massive hike. It pointed to South Korea’s biggest crypto exchange as the main catalyst behind the most recent surge. The Bitcoin fork had a massive hike in trading volume. The article stated that the volume exceeded $425 million.
Several Factors Point to More Downtrends
One of the major factors to consider at this point are candlestick patterns. During the previous intraday session, BSV started trading at $49 but experienced a massive surge in buying volume. As a result, it surged and started breaking several strong levels. It soon broke $55 which was the biggest resistance at the time.
Following the flip, it continued and broke the $75 barrier. It peaked at $76 and ended the day with gains of more than 53%.
A closer look at the candle suggests a dwindle in the buying volume. It also depicts the fact that the asset is losing momentum, especially after the retracement from $96.
Aside from candlesticks, indicators are also pointing at further price decreases. One such is the Relative Strength Index. Following the massive surge in price, the metric under consideration is currently at 87. It is above 70 which means BSV is overbought and due for corrections.
Key Levels to Watch
Top Support: $73, $68, $50
Top Resistance: $100, $114, $130
While the candlesticks and indicators point to an impending downtrend, there are indications that the asset may have small attempts at other levels. One such is the $100 barrier. Following the rejection at $96, a close at the current trading price may guarantee another go at the said mark. Using the weekly chart, it is clear that it is not one of the toughest as BSV flipped it on its first trial.
However, it seems to maintain stability above $100 as the last attempts in 2022 proved. Nonetheless, the altcoin may continue its surge and test $114. Like the previous barrier, the coin may struggle to hold prices above the mark. Additionally, the $130 resistance is the last on the list and may take a continual pouring of equal volume into the asset to achieve this.
On the other hand, in the event of a massive retracement, the first level to watch is the $73 support. Using the weekly chart, the mark stands as a critical one as demand concentration mounts around it. It further depicts a tough barrier that held out for more than two months.
If it fails, the next critical mark is at $68. Although not as strong as the previous, it is another important level to defend. Additionally, if it breaks, it could send BSV as low as $50. The chart also points to this mark as a tough one. However, it serve a larger purpose. A flip may send teh bticoin fork as low as $30.
