July 27 was the last time Bitcoin SV registered a position below $200 and hence the most part of August can be considered positive, even though highly volatile. The volatility cannot be blamed since it has been prevalent throughout the industry but over the past few days, Bitcoin SV finally seems to have gone into the wrong side of the market.
Bitcoin SV 1-day chart
As illustrated in the above analysis, Bitcoin SV sustained a strong position above $217 for the greater part of the first two weeks but then an unceremonious pullback briefly brought it down to $197. A quick recovery took place, but since then, the asset has gradually dropped towards the underlying support at $200-$197.
Picturing a descending triangle in the charts, it seems like only a matter of time before another drop below $197 is witnessed for Bitcoin SV but at the time of writing this article, the 200-Moving Average is acting as strong support. With BSV worth around $208 at the moment, a breakout from the pattern would likely exhibit strong bearish sentiment.
Bitcoin SV 4-hour chart
The bearish sentiment is clear on the 4-hour chart. Even though the 200-MA acts like support on the longer time frame, the moving average is offering strong resistance in the above chart. While following a uniform downtrend, the Fibonacci retracement lines indicated strong price points at $214, $200, and $186.
If the asset is able to muster another bullish drive, a re-test would likely take its price up to $214 before the eventual pullback. Absence of that would possibly witness BSV relying on the support at $400 over the next few days and its bearish momentum would end up forcing the coin to a new low since the end of July.
With Relative Strength Index or RSI mirroring price movement, it is a good signal in the short-term but BSV’s bullish rally is now running out of momentum.