Trade Recommendation: Bitcoin SV

Bitcoin SV

Bitcoin SV’s (BSV/USD) chart is as bullish as it gets from a technical analysis perspective. The best thing about it is the cryptocurrency is just getting started. Based on our read, we are confident that the market will print multiple fresh highs in the next few months.

Technical analysis shows that BSV/USD has broken out of a textbook Adam and Eve double bottom pattern. This happened on May 29, 2019, when the market took out resistance of $125. The reversal pattern was in construction for about six months. Thus, when the market broke out, bulls generated tremendous momentum that catapulted Bitcoin SV to as high as $254 on May 30th.

As though bulls were flexing their muscles, Bitcoin SV consolidated rather than retraced. In the process, they were painting a massive bull flag on the daily chart. We’ve seen this pattern numerous times in the last few months. It suggests a continuation of the uptrend as soon as those who bought the breakout and the bottom are done selling.

Looking at the volume, we can see a significant decline from the May 30th high. This is often a sign that sellers are losing ammunition. With Bitcoin SV approaching the resistance of the bull flag, the cryptocurrency may be positioned to break out of the pattern and resume its uptrend.

The strategy is to buy on the breakout and retest of $236 as support. If bulls can convert the $236 resistance level into support, they will likely attract the momentum to reach our targets of $300 and $340.

The process may take a month.

Daily Chart of Bitcoin SV/US Dollar on Bitfinex

Bitcoin SV crypto chart
As of this writing, the Bitcoin SV/US Dollar pair is trading at $222.08 on Bitfinex.

Summary of Strategy

Buy: Breakout and retest of $236 as support.
Targets: $300 and $340.
Stop: $224 after the breakout.

 

Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.