Data Shows Why Bitcoin SV’s 163% Rally in a Week Won’t Last


The recent gains seen by Bitcoin and the aggregated crypto market have been massive by most standards but have not even come close to comparing with the parabolic rally incurred by the controversial Bitcoin Cash hard fork Bitcoin SV (BSV).BSV’s rally, however, may not be as bullish as it seems, as the volume backing it suggests that it is pure manipulation rather than sustainable growth.This means that BSV may soon see a massive retrace, burning late investors who “fomo’d” into positions in hopes of it seeing further near-term upside.Bitcoin SV Rallies Over 160% in One Week At the time of writing, Bitcoin SV is trading down over 7% at its current price of $303.50, which marks a massive decline from its daily highs of $435.Over a one-month period, it grows incredibly clear as to just how parabolic the cryptocurrency’s recent price action has been, with it surging from lows of $113 to its recent highs of $435.Although it has since retraced significantly from these intra-rally highs, it has still been able to post unprecedented gains in 2020 that have far outpaced those seen by Bitcoin and virtually all other major cryptocurrencies.Market Manipulation Could Lead BSV to Post an Even Deeper RetraceThese parabolic gains appear to have been driven by strikingly low trading volume from reputable exchanges, signaling that this recent rally could be pure market manipulation driven by market making algorithms that engaged in wash trading to propel the crypto’s price.Nicholas Merten, a popular cryptocurrency analyst and the founder of the popular YouTube channel DataDash, spoke about this in a recent tweet, noting that the vast majority of Bitcoin SV’s recent volume has originated from no-name exchanges.“Ignore the price moves of BSV. Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price,” he noted.Ignore the price moves of $BSV. Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.— Nicholas Merten (@Nicholas_Merten) January 14, 2020It is probable that the massive rally was partially the result from the bullishness seen throughout the aggregated crypto markets, although the ongoing market-wide uptrend is far from enough to begin sparking parabolic movements amongst major altcoins like Bitcoin SV.This may mean that BSV’s ongoing retrace will cut significantly deeper as legitimate traders begin taking profits off the table.Featured image from Shutterstock.

Go to Source
Author: Cole Petersen


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.