Although Bitcoin’s price didn’t experience any notable increases this week, its forks, Bitcoin Cash and Bitcoin SV, have been stealing the spotlight with significant breakouts. As a result, investors are shifting their focus from BTC, opting to invest more aggressively in these two altcoins. Nonetheless, market analysts anticipate a potential short-term pullback in the prices of BSV and BCH, as their RSI indicators suggest they are currently in overbought regions.
Profitable Addresses Might Soon Trigger A Correction
This week has seen both Bitcoin SV (BSV) and Bitcoin Cash (BCH) prices climb to new heights, even as Bitcoin experiences a correction around the $44K mark. However, this price increase for BSV and BCH has led to increased selling pressure, particularly from addresses holding profitable positions.
These investors are considering exiting the market to seek opportunities in other emerging altcoins. Typically, when a cryptocurrency consolidates for an extended period and then experiences a sudden surge, investors tend to liquidate their holdings to capitalize on the rise, putting their investments into other assets with higher volatility. This trend is currently observable in the case of BSV and BCH.
Additionally, there’s been a significant uptick in large transaction volumes. Data from IntoTheBlock indicates a steady increase in BCH’s whale transactions, with the total volume reaching 1.17 million BCH, a movement likely driven by the coin’s price attracting whales. However, there has been substantial liquidation of BSV by whales. Given this activity, both BSV and BCH face potential bearish risks as holders may continue to liquidate their holdings.
Bitcoin SV (BSV) Price Analysis
Bitcoin SV (BSV), the fork of Bitcoin Cash (BCH), has spiked nearly 50% after an unexpected surge in its trading volume on the South Korean crypto exchange Upbit. However, the price recently took a halt near $97 as selling pressure intensified.
Despite this pullback, the presence of a long wick on the candlestick indicates robust buying interest at the immediate Fib channel. Buyers are aiming to test $97 again, if successful, BSV price might aim for $106-$114. However, an overbought RSI suggests a correction for BSV price near the current level.
Bitcoin Cash (BCH) Price Analysis
BCH experienced a notable upturn from its 20-day Exponential Moving Average (EMA), leading to a surge above $275. However, sellers are strongly defending further surge, triggering a correction.
Bears are attempting to send the price below $250; however, there was a significant buying when the price dipped to $260. Buyers are likely to aim at holding this upward momentum, with chances of pushing the price to the crucial target of $300-$330.
Bearish traders might have different strategies as RSI trades near the overbought region. They could attempt to prevent the upward movement above $300 and initiate a price correction. To regain dominance, sellers need to pull the price below the EMA20 trend line.