Bitcoin SV splits in two chains; BSV/USD stays in the range so far

Bitcoin SV (BSV), the 5th largest digital asset with the current market value of $5 billion, has lost about 2% of its value in recent 24 hours to trade at $277.40 at the time of writing. Notably, the trading  volumes of the coin has retreated to 1.7 billion from nearly 3 billion recently. 

The coin hit $458.70 on January 14, following the news that Craig Write might have got access to Bitcoins mined during early days of the first cryptocurrency. However, the pump proved to be unsustainable as the price retreated below $300.00.

Bitcoin SV activated a hard fork 

BitMEX research wrote on Twitter:

Bitcoin SV has conducted a hardfork upgrade. The latest block is regarded as valid by upgraded clients (Bitcoin SV 1.0.0) and invalid according to the old rules.

Notably, the BitMEX team noted that a lot of BSV nodes have not upgraded for the fork, which eventually led to the chain split.

A split has now been detected, the old rules chain has been extended by one block.

While technically it means that now there are two separate chance that co-exist and function independently and follow different set of rules,  it is still too early to say that it will result in a new coin. Basically, the new chain will need to gain enough support from miners to survive, otherwise, it will turn into a dead end and eventually cease to exist. 

BSV/USD: technical picture

On the intraday charts, BSV/USD recovery has been capped by $288.00 barrier reinforced by SMA50 weekly. In the recent days. the price has made several attempts to break higher, but failed to succeed. Once it is out of the way, the upside is likely to gain traction with the next focus on $300.00 and $325-$330, which is the next resistance area created by the recent recovery top.

On the downside, a sustainable move below $270.00 (the lower boundary of the recent consolidation channel) will bring $236.00 into focus. This support is created by January 19 low, also the bottom reached during the retreat from the above-mentioned peak.  If it is broken, the sell-off may be extended towards $200.00.

BSV/USD 1-hour chart