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Bitcoin Cash SV Does a Flash Spike: Potential for More Upside Remains

bitcoin BTCUSD

The variant of Bitcoin Cash known as Bitcoin Cash SV (BSV) performed a flash spike against the USD, rising above $400 per coin before retreating to price levels around $370. BSVUSD is now trading at 371.125 as at the time of writing, with price action now forming a consolidation triangle pattern.

A derivative of the Bitcoin blockchain which was created by the controversial BCH hard fork of 2018, Bitcoin Cash SV has been a beneficiary of this week’s price advance of the major cryptocurrencies, gaining nearly 77% intraday and more than 210% on the week at current price levels. The reasons for the initial spike are still not clear, but there are rumours that it has to do with a purported list of BTC holdings provided by a certain Craig Wright to the family of his late associate.

As is typical of such rumours, prices were pumped and dumped almost immediately. However, the present technical parameters suggest that there is yet some steam in this price move.

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Technical Outlook for BSVUSD

BSVUSD is less than 2 years old and therefore does not have enough price history to make long-term determinations on price action. Therefore, this analysis has to rely on price information on the 4-hour chart.

The price action of the last three days on the 4-hour chart of BSVUSD shows what appears to be a bullish pennant, with price now contained in the consolidation component of the pattern. Price would need to be pushed back up by renewed buying interest to break the pennant and complete the measured move at least to the 502.74 level (23.6% extension from swing high of this week).

Failure of the breakout move could lead to breakdown of the pennant, with price targeting 274.86 and 204.87 as initial support targets.