Bitcoin SV News Today – Headlines for April 21

  • The price of BSV could plummet due to three fundamental factors
  • Bitcoin SV’s good performance may be undone by low volatility
  • Poor volume and profit-taking have also been cited as reasons

Bitcoin SV News Today – BSV has managed to perform well despite the ongoing global health crisis that has hit economies had including the crypto market. The number 5 largest crypto by market cap has gained 90% year-to-date. It has undergone a pre-programmed supply rate cut.

Despite this, the coin is maintaining its bullish bias in the medium-term in a key technical support area. But the figures that make the asset reliably bullish is missing for BSV. Experts have linked this incident to three different issues including low volatility, poor volume, and profit-taking.

The Role of Low Volatility

In the early days of April, BSV was trading between the ranges of $141 and $209. But now, this figure has reduced to $167 and $212, according to data given by the Bollinger Bands. BB typically measures an asset’s rate of volatility with the gap between its standard deviations. The larger the gap, the higher the volatility of the asset. If it tightens, the asset will be trading tighter which leads to price breakouts.

Minor volatility can be good news for an asset because it will show the asset level of stability. But for Bitcoin SV, minor volatility suggests that the coin’s market is losing steam. Meaning, a breakout to either position is a possibility. This type of scenario can weaken Bitcoin SV’s Blockchain security. Because the fewer number of miners will make the Blockchain network more centralized. It could leave the network more susceptible to attacks which could be a bearish signal for Bitcoin SV.

Poor Volume and Profit Taking

The likelihood of BSV undergoing a price drop has risen further because of the coin’s drop in trade volume. This is easily a signal that traders are not coming into the market. It means that the traders who have maintained their BSV gains are now fewer. The price of the coin is going up, which is a divergence. In a market recovery, lower volumes is a sign that traders are still concerned about prices. This typically comes after a correction. If the market is on the rise, a lack of long points could cause low volumes. Now traders think that resistances have been established.

The issue of profit-taking puts Bitcoin SV at a risk of posting sharp declines. The price of the coin could inevitably fall hard due to profit-taking because it is one of the top crypto assets. It is sitting on top of very attractive yearly gains despite the economic crisis. Profit-taking has risen because of the increase in cash liquidity due to panic caused by the coronavirus.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.