Coinbase, one of the leading cryptocurrency exchanges, has recently announced its decision to delist Bitcoin SV (BSV) on January 9, 2024. Users have been advised to withdraw their funds before this date to avoid potential liquidation.
BSV’s Recent Price Trends:
BSV had been trapped under a descending resistance trendline for an extended period, dating back to April 2021 when it was trading at $50. This bearish trend continued until June 2023 when it reached a low of $15.70.
However, a notable shift occurred as BSV initiated an upward move, marked by a long lower wick on the price chart, indicating increased buying pressure. Subsequently, BSV managed to break free from this 800-day trendline, a significant technical milestone.
Challenges with Horizontal Resistance:
Despite breaking free from the long-term trendline, BSV encountered challenges in surpassing the $50 horizontal resistance area. The $50 level has historically served as both support and resistance dating back to 2018.
The inability to breach this level led to two rejections (red icons), reflecting the significance of this price point as a potential barrier.
RSI and Price Prediction:
A key indicator in the analysis is the Relative Strength Index (RSI), which provides insights into market momentum. A reading above 50 on the RSI, combined with an upward trend, is typically favorable for bulls. Conversely, a reading below 50 may signal bearish conditions.
BSV’s RSI, while showing some uncertainty, remains above 50. This suggests a bullish bias, despite recent setbacks. The daily chart illustrates that BSV’s price accelerated its ascent after bouncing off an ascending support trendline on October 9, reclaiming the $40 horizontal area.
Bearish Sentiment Amid Coinbase Delisting:
Despite the positive momentum, concerns have arisen following Coinbase’s announcement of BSV delisting. Coinbase plans to convert users’ BSV balances into the equivalent value of other supported digital assets if not withdrawn before January 9, 2024, potentially leading to liquidation.
BSV Price Prediction: What’s Next?
The current price action sees BSV trading within a range between $40 and $56, having failed to break free from the latter. While the daily RSI remains above 50, indicating some bullish sentiment, its downward trend adds an element of uncertainty.
Should BSV continue to decline, it could revisit the $40 horizontal area, representing a 20% decrease from the current price. However, a daily close above the $56 resistance level could trigger a substantial 35% increase to the next resistance at $67.
Such a breakout might serve as a catalyst for a longer-term upward movement, though the influence of Coinbase’s delisting decision remains a factor to watch in BSV’s price dynamics. As with any cryptocurrency, investors and traders should exercise caution and closely monitor developments in this volatile market.
