- The Bitcoin SV rally may have been caused by dormant accounts.
- BSV / USD has pulled back from recent highs due to technical corrections.
Bitcoin SV has been ubiquitous since early January. The Craig Wright saga got the speculative ball rolling while the pump generated by the fluid exchange helped create a FOMO (Fear of Missing Out), pushing the coin from $ 116 to over $ 458 in four days.
Another shot at the BSV rally
Amun Research analysts pointed to network fundamentals that, among other things, could have led to a BSV rally. The investigation therefore found that the increase may be due to a large number of dormant accounts. The experts found that many BSV holders had no access and had not claimed their coins since receiving them.
They also estimated the average amount of time investors held on to Bitcoin and BSV before starting a transaction. This key figure is known as the “idle state” and enables the holding habits of BSV investors to be assessed. It found that BSV was held for an average of 13 days, which is longer than Bitcoin’s eight days.
“If all things are the same, the higher the idle time in which the older coins are settled on that day for BSV than for BTC, which in turn means that longer-term investors in BSV are getting their coins at a higher rate than is currently in BTC Circulate. ”
BSV / USD: technical picture
The coin has bounced back from the intraday low of $ 275. Bearish sentiment will still dominate the market as long as the price stays below $ 300. This psychological barrier is reinforced by the SMA50 4-hour and the top line of the 4-hour Bollinger Band. Once it’s out of the way, the uptrend is likely to gain momentum when the next focus is on $ 330 (the top line of the 4-hour Bollinger Band) and $ 400.
On the flip side, a sustained move below the Asian low of $ 275 will pave the way towards the recent recovery low of $ 236 on Jan 19th. If it is broken, psychological $ 200.00 will come into focus.