Bitcoin SV, the fork of a fork coin, continues to survive and sustain, despite having only a small camp of supporters and developers working on its blockchain. The cryptocurrency, at the time of writing, was priced at $152, with BSV the 11th-largest on CoinMarketCap’s charts. However, while BSV has seen nothing but price drops over the past week, more of this bearishness may be on its way.
Bitcoin SV 4-hour chart
Source: BSVUSD on TradingView
The four-hour chart for BSV showed the price fast-approaching the support level at $145.76, which should, technically, support the price, at least for the short-term. This contributed to the formation of a descending triangle on the charts, a formation that is inherently bearish. Hence, expecting a price drop is obvious.
The Stochastic RSI was forming a series of bearish crossovers, which was due to the price’s slow descent. The next crossover will push the Stochastic RSI into the oversold zone.
To add to the already bearish picture that is present for BSV, the MACD indicator was already deep into a bearish crossover and well-below the zero-line.
Bigger picture
Source: BSVUSD on TradingView
On the daily time frame too, BSV was forming a bearish pattern – the death cross. When the 50-DMA [Yellow] goes below the 200-DMA [purple], it is a death cross, and it usually signifies a long-term trend change favoring the sellers.
Since this has formed, we can expect Bitcoin SV to head lower on the charts and perhaps into its immediate support at $145.76. Breaching this would result in events similar to the one seen on 27 June, a day where the candle wicked as low as $135. Hence, the next support was at $135. Any closes below this will be fatal for the cryptocurrency.
Regardless, there are chances that BSV might bounce from either of these supports. However, until these support levels come into play, the price is due for a drop. In totality, Bitcoin SV might register a drop ranging from 4% to 12%.
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