Bitcoin Satoshi Vision (BSV): Temporary Pullback to the 50-day MA?

*BSV daily timeframe: bounced off support and currently looking to break above the 50-d MA

BSV has been on a downtrend since achieving a bearish double top pattern early this year. It dropped to a low of 104, after having reached all-time highs of 497 this year – a drop of almost 80%. Since then, it has been trading in a tight consolidation (100 to 200). It would seem that the round number, 100.00, is a strong psychological support, as the price has never fallen below this.

Over the past few weeks, the crypto market has been rallying, with Bitcoin (BTC) leading the way. As such, BSV has also rallied from its lows of the past weeks, with gains of more than 30%. It would seem that we may have seen the bottom for BSV for now, and it looks like it could recover from this year’s lows.

Trade Idea: buy BSV if the 50-day MA holds

Currently, it is still in the middle of a trading range that began last April, and I believe BSV may continue to rally further towards the resistance area if it holds above the 50-day moving average (gray line, 136), although it has been pulling back towards the 50-day moving average over the past few days. In fact BSV even traded below that level, but it bounced immediately when the buying demand picked up.

As such, I see a possible trade here – buy on the way up, as it holds above this 50-day MA at 140-145. Take a position when the 50-day MA looks like it has become a dynamic support for BSV, with the expectation that it may have a continuation rally.

Target prices would be the upper resistance area of the consolidation: 180 to 200. Aside from this area being the resistance of the range, this is also where you can find the following:

1. 1. 1. 1. The 200-day moving average (purple line) is currently near the trading range resistance area. It is a major dynamic resistance for most technical traders.
         2. The 23.60% Fibonacci retracement level. This could be a reason for some traders to take profits in some of their early positions.
         3. The whole number, 200.00, is a psychological resistance number where traders would be looking to take profits and get out of a position.

The overall bias for BSV is still bearish to neutral, so most rallies should be sold into strength. Take profits as soon as the price rallies to the resistance areas indicated above.

Give the trade some room to breathe if it falls below the 50-day moving average, as it has exhibited buying demand below this level. However, this trade is invalidated if it falls below 130.00, which is currently the 20-day moving average (yellow line). A sell-down below this could mean it revisiting its previous support.

BSV Trade Summary:

Buy: 140-145

Take Profits: 180-200 (Take partial profits as it rallies)

Stop Loss: 130 (20-day MA)

VAR: 0.50 – 1.00 of your portfolio only

Always manage your risk!

BSV is currently the 42nd largest cryptocurrency, with a market capitalization of $2.61 billion. BSV is a product of a hard fork in Bitcoin Cash (BCH) that was launched in 2018.