The cryptocurrency markets are ALIVE! However, there seems to be once cryptocurrency that is leading the charge. If you haven’t noticed, the notorious Bitcoin fork, Bitcoin SV, surged by a total of 200% over the past 48 hours! If you are wondering what the hell is going on, don’t worry, I’ve got you covered!
Taking a quick look at the BSV chart above shows the magnitude of the recent price increase. Bitcoin SV managed to surge by a total of over 200% to break above the all-time-high and reach the $435 level before stalling and rolling over.
So, What On Earth Is Going On?
Bitcoin SV has always been shrouded with controversy and today is no different. If you haven’t been following, there is basically an on-going lawsuit between the creator of BSV, Craig Wright, and the estate of his now-deceased partner, Dave Klieman. Long story short, Wright and Kleiman allegedly managed to mine over 1.1 million Bitcoins together in the early days of the cryptocurrency. The Klieman estate have taken Wright to court over the fact that he owes them at least half (not sure exactly how much) of the fortune, now estimated to be worth close to $9 BILLION DOLLARS! YES, 9 BILLION!
The problem is that Wright claimed to not have all the private keys at his disposal to unlock the fortune. The BTC was moved to a trust, known as the “Tulip Trust”, and a judge has ordered Wright to hand over a full list of his Bitcoin holdings acquired before December 31st, 2013 - something which he failed to do as he claimed it would be impossible.
Anyway, fast forward to the present, Wright was granted an extension until February 3rd to turn over the keys as he was waiting on some mysterious “courier” to come and provide the last slice of the private keys to unlock the Tulip Trust. Yesterday, it came out that Wright had notified the judge that the courier had indeed arrived and has filed a full list of his entire Bitcoin holdings - YIKES!
As Wright filed his paperwork to announce that the courier had arrived, BSV started to SOAR!
What About The Price Increase?
So, BSV surged by a total of 200% over 48 hours, but if we dig a little deeper, things start to look a little strange. A quick look at CoinMarketCap shows that BSV witnessed over $5 billion in trading volume - in just ONE DAY!
There is no chance that the majority of this volume is even real. Why? For some perspective, top companies like Facebook only trade like $12 million per day on NASDAQ - there is no way that BSV managed to shift over $5 billion in volume in 1 day!
Arguments have been put forward, many of them which cannot be verified. However, the general consensus is that this is wash trading by large-BSV-holders to pump the project and get out before the truth comes out in the court case - whatever it may be.
Regardless of what is really going on, we cannot expect BSV to continue with this absurd parabolic trend. The only way it could be sustained is if Wright REALLY does have access to the Tulip Trust - in which case, we are all pretty much DOOMED! 1.1 million BTC in the hands of anybody is worrying, let alone the self-proclaimed creator of Bitcoin.
BSV Price Analysis
It is very difficult to conduct an accurate analysis of such a parabolic chart - especially when the majority of the volume is deemed to be fake!
Nevertheless, we can see in the chart above that BSV soared yesterday, causing it to break above the previous ATH at $256. The cryptocurrency continued to rise above $400 to reach $435 before it rolled over and started to fall.
If BSV does continue to drop, we can expect support firstly at $300 (.382 Fib Retracement) and $256 (previous ATH and .5 Fib Retracement). Beneath this, additional support is found at $214, $200, and $182.
Conclusion
In conclusion, just keep away from this animal of a market! There is no clear indication of what will happen and if you will be taking a HUGE risk by putting your money in such a volatile asset.
