• Bitcoin SV price sits on a confluence of support ranging from $188 to $175.
  • Technicals suggest that a continuation of selling pressure could spell disaster for BSV.
  • Adding credence to the bearish case is Craig Wright’s claim to a BTC address that has backfired.
  • If BSV slices through the initial support, it could trigger a 20% to 50% sell-off.

Bitcoin SV price has seen massive spikes in buying pressure followed by equally extreme selling pressure. Now, BSV stands at a make-or-break point as the main figure behind the project faces another legal battle. 

Craig Wright’s unending legal battles

Bitcoin SV creator, Craig Wright, seems to be back in the spotlight yet again. But this time around, Wright could end up paying a whopping $17.5 million in fines according to a legal serving from Anderson Kill P. C on behalf of its client, Danny Brewster.

This response is a result of the notice sent by Craig Wright’s law firm, DCA Ontier, to Bitcoin developers regarding the ownership of a few BTC addresses. The letter described the attack on Wright’s computer network around February 5, 2020, which has led to a loss of around 111,000 BTC worth $5.5 billion at the time of writing.

In his notice, Wright included a Mt. Gox address “1FeexV6bAHv8ybZjqQMjJrcCrHGW9sb6uF” aka “1Feex.”  Interestingly, independent security auditor WizSec mentioned that the 1Feex address was a victim of the 2011-2013 Mt. Gox attack, which puts Wright and his notice in a tough spot.

Therefore, Anderson Kill P.C’s serving mentions that Wright’s claims to the BTC held in “1Feex address” is unfounded.

“You and your clients Tulip Trading Limited and Craig Steven Wright, and their agents are hereby placed on notice that our client and many others similarly situated have an equitable interest in the Bitcoins held at 1Feex address in an amount not less than, and likely exceeding $17,500,000.00.”

To further his attempt, Wright allegedly threatened to “bankrupt” and “destroy the lives” of developers from Bitcoin, Bitcoin Cash (BCH), and Bitcoin SV (BSV) camps by suing them.

Bitcoin SV price at crossroads

Bitcoin SV price showed a stark selling pressure since February 18, which has resulted in a collapse from $273 to $170. Since then, BSV seems to have recovered above a crucial barrier at $188. As it stands, the buyers and sellers are fighting to establish dominance.

If the sellers take over Bitcoin SV price, it will spell disaster for the hard-forked cryptocurrency, triggering a correction that could extend well-below the immediate support at $175.

Adding credence to the bearish scenario is the Parabolic SAR indicator which has moved above the Bitcoin SV price. Such behavior suggests that a trend reversal is still underway.

BSV/USD 3-day chart

BSV/USD 3-day chart

Investors should note that the $188 price level is critical in defending the sell-off. This demand barrier is a confluence of buyers and the 50 and 100 three-day moving averages (MA). 

Based on IntoTheBlock’s In/Out of the Money Around the Price (IOMAP) model, nearly 175,000 addresses hold about 1.31 million BSV here. So, if Bitcoin SV price slices through this support level, others demand walls will quickly collapse. 

In such a case, Bitcoin SV price will head down to the 38.2% Fibonacci retracement level at $175. A continuation of the selling pressure here could extend the correction by another 20% to 50% to $140 or $82, respectively.

Bitcoin SV IOMAP chart

Bitcoin SV IOMAP

On the other hand, if Bitcoin SV price manages to bounce from the support barrier at $188 or $175, a 25% surge to $220 can be expected. IOMAP cohorts show 24,400 addresses hold 756,000 BSV here.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

More Ethereum News

VeChain consolidates as clear trend fails to establish

VeChain price has been on a tear since the start of 2020 and shows no sign of slowing down despite the recent market crash. Now, VET awaits a volatile breakout from its consolidation to establish a clear trend.

More VeChain News

Chainlink could be the first to recover amid market crash

Chainlink, like the rest of the market, has experienced a significant correction in the past four days However, the digital asset continues to hold above a crucial support level and on-chain metrics show it could be one of the strongest during this correction.

More Chainlink News

Cardano on-chain metrics reveal paradigm shift in nature of investors

Cardano price shows the loss of momentum from the buyers’ end, which has resulted in a breakdown of a critical support level. Now, a continuation of this momentum could ensue as blockchain data reveals a grim future for ADA.

More Cardano News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs

Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.

Read the weekly forecast

BTC

ETH

XRP