BSV/USD loses ground as Bitcoin SV gets ready for a hard fork

Bitcoin SV, now the 5th larges coin with the current market value of $4.89 billion, reached the top at $458.74 on January 14 and retreated to $272 by the time of writing. Despite that the coin has lost over 40% from the recent peak, it is still one of the best-performing coins of the year. 

New pump ahead?

While the reasons for the recent BSV surge range from the speculative pump to the new developments in the Kleiman vs. Wright lawsuit, the traders should brace themselves for a new boot of volatility. Bitcoin SV is moving towards Genesis hard fork that will take place on block 620538 approximately on  February 4. 

While the fork is not expected to result in a new blockchain, the price of the coin may be volatile around the event as the smooth network operation depends on how the participants update their software. 

Huobi Global has confirmed the support of the fork and announced that all deposits, withdrawals and new margin trading loan services would be suspended before the upgrade and resumed after the BSV mainnet becomes secure and stable.

BSV/US: technical picture

The initial support for BSV/USD is created by SMA50 4-hour on approach to $263.00. If this line is broken, the sell-off may continue towards $233.00, which is the lower line of 4-hour Bollinger Band. Meanwhile, a crucial barrier comes at a psychological $200. It is closely followed by SMA100 4-hour at $192.00.

On the upside, We will need to see a sustainable move above $300.00 for the upside to gain traction. Once it this barrier out of the way, the upside is likely to gain traction with the next focus on $377.00 (the upper line of the daily Bollinger Band) and $400.00. This resistance is likely to slow down the bulls and trigger the downside correction before they make another attempt to pass this critical barrier.

BSV/USD 4-hour chart