Bitcoin SV rally has reversed as it was based on shaky foundation
|- Bitcoin SV rally might have been caused by dormant accounts.
- BSV/USD has retreated from the recent highs amid technical correction.
Bitcoin SV has been all over the place since the beginning of January. Craig Wright's saga set the speculative ball rolling, while pump created by lo liquid exchanges helped to create a FOMO (Fear of Missing Out) and push the coin from $116 to above $458 in a matter of four days.
Another take at BSV rally
Analysts of Amun Research pointed out to network fundamentals that might have caused BSV rally among other reasons. Thus, the research revealed that the spike might have happened due to a large number of dormant accounts. The experts found out that a lot of BSV holders did not have access and not claimed their coins since they obtained them.
Also, they estimated the average time investors had held onto Bitcoin and BSV, before initiating a transaction. This metric is known as "Dormancy" allows evaluating the holding habits of BSV investors. At turned out, BSV was held for 13 days on average, which is longer than Bitcoin's eight days.
“All things being equal, the higher the dormancy the older coins are being transacted on that day for BSV than BTC, which in turn means that longer-term investors of BSV are releasing their coins into circulation at a higher rate than that of BTC currently.”
BSV/USD: technical picture
The coin has recovered from the intraday low of $275, the market is still dominated by bearish sentiments as long as the price stays below $300. This psychological barrier is reinforced by SMA50 4-hour and the upper line of 4-hour Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on $330 ( the upper line of 4-hour Bollinger Band) and $400.
On the downside, a sustainable move below the Asian low of $275 will open up the way towards the recent recovery low of $236 hit on January 19. If it is broken, a psychological $200.00 will come into focus.
BSV/USD 4-hour chart
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