How's Bitcoin Satoshi’s Vision Drama Impacting Its Price Action?
Kiana Danial | Dec 09, 2018 09:46PM ET
There’s been more drama in the Bitcoin Cash Fork. Bitcoin Satoshi Vision has been fighting its way up while the “other” Bitcoins fight right back. So what’s been going on in what feels like a crypto reality TV show? Here’s a fundamental and technical overview.
There’s been more drama from the Bitcoin Cash Split, after a weekend which saw cryptocurrencies tumbling across the board—except for one. Bitcoin Satoshi’s Vision, which forked from Bitcoin Cash last month, was the only green point in a sea of red, and at several points beat Bitcoin Cash to become the fifth-most-valuable crypto by market cap.
There’s no way to be certain, but there’s widespread speculation that SV’s backers may be inflating the price. Calvin Ayre, one of the billionaire backers of the SV protocol, recently tweeted that he was converting “all assets” for BSV, gold and real estate. “ In other news, the battle of the Bitcoins may make its way into the courtroom.
Last week, United American Corp launched a lawsuit against Roger Ver, Jihan Wu, Bitmain and other leading figures behind Bitcoin ABC. The suit alleges that Bitcoin ABC unfairly cheated during last month’s fork by using rented mining power to “hijack" the Bitcoin Cash blockchain, and seeks injunctions against ABC proponents and unspecified damages. Although there’s no proven link between UnitedCorp and BSV, Calvin Ayre has tweeted in favor of the lawsuit.
So what about BSV’s price action? Since there still isn’t enough historical data for the crypto, I’m turning to the 4-hour chart for technical analysis. Doing so, I was surprised to see that despite all the fundamental drama, BSV has actually found a comfortable price range to consolidate within when traded versus the USD.
After the crazy roller coaster ride when it first started trading in November, it now appears to be ranging between two key Fibonacci retracement levels of $112 and $85. The Ichimoku cloud indicator also appears flat, although the future cloud is a bit more on the bullish side. This was, of course, BSV’s value versus the USD. How about its value versus Bitcoin, the original, though? That’s quite a different story.
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The BSV/BTC chart shows a consistent uptrend during the volatility. Each time the BSV/BTC drops, it regains energy to reach a new all-time-high in its short lifetime, creating 3 consecutive higher highs on the 4-hour chart. The last high was on Friday reaching 0.034, which was immediately followed by a pullback throughout Sunday. However, the future Ichimoku cloud remains bullish, with the pair also trading above the cloud. With that, in the time being, the BSV/BTC pair appears to be supported by the 50% Fibonacci level at 0.017.
*This article was originally published
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