The price of Bitcoin SV (BSV) fell sharply on Tuesday after a day of lower volumes of trading even though its parent blockchain underwent a major upgrade.
Bitcoin SV removed block size limits, a thorn that has so far kept blockchains from achieving full-fledged scalability, in its so-called Genesis Hard Fork. Jimmy Nguyen, the former CEO of nChain – the force behind the Bitcoin SV project, announced in a tweet that their upgrade became effective after the mining of Bitcoin SV’s block 620539, adding:
“It’s good night from Team SV . . . and a new dawn for Bitcoin.”
The community rejoiced but didn’t turn up for increasing the demand for BSV. The coin fell by up to 6.08 percent on Tuesday to $265.40, showing no reaction to the “good news.”
Pessimism Outweighs Optimism
Part of the reason why BSV didn’t rise on the Genesis hard fork is its overbought status. The cryptocurrency earlier this year registered a remarkable price rally, surging 144 percent in a day. Weeks later, Bitcoin SV founder Craig Wright claimed that he knew who pumped the BSV market.
The statements unknowingly pointed out that only a few players controlled the Bitcoin SV trading, amounting to the possibilities of price manipulation – even insider trading. The BSV/USD exchange rate was already declining at the time of Mr. Wright’s statement.
Furthermore, Mr. Wright also failed to turn up the missing 1.1 million BTC units he had supposedly mined as Satoshi Nakamoto – the pseudonymous creator of Bitcoin. Bulls have long waited for Mr. Wright to dump his bitcoin stash for BSV. With the suspense over whether or not Mr. Wright actually had that bitcoin, BSV became a very uncertain investment to many.
Kleiman v Wright – Latest Filing
“An adversary who submits false declarations, offers contradictory perjurious testimony under oath, and submits false documents that even his own counsel are forced to disavow…”
Must read again.https://t.co/zDkQaVBg75 pic.twitter.com/vmso6bg494
— Arthur van Pelt – Dragon Industries (@MyLegacyKit) February 3, 2020
Meanwhile, reports are surfacing that Bitcoin SV hard fork has resulted in a chain split, with data showing some miners continuing to mine blocks on the old chain.
$BSV hard forked today
… >100 of the ~300 nodes didn’t upgrade
Someone is still mining the pre-fork chain (red below) and now created a split
— Alistair Milne (@alistairmilne) February 4, 2020
Bitcoin SV 1D Chart
At $270.86, the BSV/USD pair is now down by more than 41 percent from its 2020 top. The pair’s daily Relative Strength Indicator, coupled with lackluster volumes, shows upside exhaustion. That means BSV could continue its plunge in February 2020 – favorable fundamentals aside.
Prone to price manipulation, Bitcoin SV still has bullish indicators lurking around. The asset’s wild move upside formed a Golden Cross. And the same indicator is likely to prompt traders to locate new accumulation areas even though BSV heads lower.