Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
- BSV returned to the psychological $50 level at the time of writing.
- Demand on the futures market decreased, but sentiment remained positive.
Bitcoin SV [BSV] faced a major threat to last week’s 50% gain after hitting the $60 overhead hurdle. The altcoin rose from $33 to $58 between October 16 and 22, but quickly returned to the psychological level of $50 as of press time.
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In the meantime, Bitcoin [BTC] reached a new high of $30.9k in Q4 2023 as bullish momentum extended. But the kingcoin suffered a minor correction at the time of writing.
Will Bitcoin SV’s Pullback Stop at $50?
Source: BSV/USDT on TradingView
On the daily charts, liquidity was in the highlighted white area of $44.90 – $52.5. Interestingly, the region joined the psychological level of $50, and the recent pullback temporarily subsided in the confluence area.
Ergo, the confluence area could slow the decline and provide buyers with opportunities to re-enter the market. If so, the bullish target will be the immediate overhead hurdle and bearish order block (OB) of $59.0 – $65.68 (red) formed on May 10, 2022.
But an extended decline below the Fair Value Gap (FVG) could drag Bitcoin SV towards $40 or lower.
However, buying pressure was still high, as evidenced by the overbought status of the Relative Strength Index (RSI) at the time of writing.
Furthermore, demand for BSV on the spot market has increased significantly over the past week, as evidenced by the increase in On-Balance Volume (OBV). But the flat move showed a slight hesitation in demand in the last few hours before press time.
Open interest rates fell slightly
Source: Coinalyse
Demand in the Futures market fell from $47 million to >$30 million at the time of writing, as evidenced by the decline in Open Interest (OI) rates. The drop in demand reflects the recent downturn.
How many Worth 1,10,100 Bitcoin SV today?
However, overall investment sentiment was still positive, as evidenced by positive funding rates. Moreover, long-term price development was firmly in an upward trend, as shown by the Accumulative Swing Index (ASI).
Based on the above indicators, BCH could try to defend the psychological level of $50.
