The recent gains seen by Bitcoin and the aggregated crypto market have been massive by most standards but have not even come close to comparing with the parabolic rally incurred by the controversial Bitcoin Cash hard fork Bitcoin SV (BSV).
BSV’s rally, however, may not be as bullish as it seems, as the volume backing it suggests that it is pure manipulation rather than sustainable growth.
This means that BSV may soon see a massive retrace, burning late investors who “fomo’d” into positions in hopes of it seeing further near-term upside.
Bitcoin SV Rallies Over 160% in One Week
At the time of writing, Bitcoin SV is trading down over 7% at its current price of $303.50, which marks a massive decline from its daily highs of $435.
Over a one-month period, it grows incredibly clear as to just how parabolic the cryptocurrency’s recent price action has been, with it surging from lows of $113 to its recent highs of $435.Although it has since retraced significantly from these intra-rally highs, it has still been able to post unprecedented gains in 2020 that have far outpaced those seen by Bitcoin and virtually all other major cryptocurrencies.
Market Manipulation Could Lead BSV to Post an Even Deeper Retrace
These parabolic gains appear to have been driven by strikingly low trading volume from reputable exchanges, signaling that this recent rally could be pure market manipulation driven by market making algorithms that engaged in wash trading to propel the crypto’s price. Nicholas Merten, a popular cryptocurrency analyst and the founder of the popular YouTube channel DataDash, spoke about this in a recent tweet, noting that the vast majority of Bitcoin SV’s recent volume has originated from no-name exchanges.“Ignore the price moves of BSV. Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price,” he noted.
Ignore the price moves of . Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price. — Nicholas Merten (@Nicholas_Merten)
It is probable that the massive rally was partially the result from the bullishness seen throughout the aggregated crypto markets, although the ongoing market-wide uptrend is far from enough to begin sparking parabolic movements amongst major altcoins like Bitcoin SV.
This may mean that BSV’s ongoing retrace will cut significantly deeper as legitimate traders begin taking profits off the table.Featured image from Shutterstock.
