Coinbase announced that it will delist Bitcoin SV (BSV) on January 9, asking users to withdraw their funds or face liquidation.
In June, BSV broke out from a long-term descending resistance trendline but did not clear a crucial horizontal resistance area.
BSV Breaks Out From 800-Day Trendline
The BSV price had fallen under a descending resistance trendline since April 2021, when it traded at a high of $50. The decrease culminated with a low of $15.70 in June 2023.
Afterward, BSV began a significant upward movement, catalyzed by a long lower wick (green icon), a sign of buying pressure.
The altcoin broke out from the trendline next week. At the time, the trendline had been in place for 800 days.
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Despite the breakout, BSV failed to move above the $50 horizontal resistance area. Rather, the area rejected it twice (red icons). The $50 area is critical since it has intermittently acted as support and resistance since 2018.
Even though the BSV price failed to break out, the weekly RSI is bullish. With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward. The opposite is true if the reading is below 50; the indicator is above 50 and increasing, both signs of a bullish trend.
BSV Price Prediction: What’s the Next Move?
The technical analysis from the daily timeframe shows that the BCH price accelerated its rate of increase since bouncing at an ascending support trendline on October 9 (green icon). This also caused a reclaim of the $40 horizontal area.
However, the price is trading between the $40 and $56 range since it failed to break out from the latter.
There is some bearish sentiment regarding the fact that the Coinbase exchange announced that it will delist BSV on January 9, 2024. More specifically:
Coinbase will automatically convert the balance into the equivalent value of other supported digital assets and return it to the account after January 9.
So, the funds will be liquidated if the users do not withdraw them before January 9, 2024.
The daily RSI is undetermined since it is falling but is above 50. If the BSV price continues falling, it can reach the $40 horizontal area, 20% below the current price.
Despite this bearish BSV price prediction, a daily close above the $56 resistance area can cause a 35% increase to the next resistance at $67.
This will also cause a long-term breakout, catalyzing a longer-term upward movement.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.