Having scored double-digit gains in the last 24 hours, Bitcoin Satoshi’s Vision (BSV) is now looking to break out of a 15-day long narrowing price range.
The world’s eighth largest cryptocurrency by the market value created out of the hard fork of bitcoin cash on November 15, 2018, is currently trading at $209 on Bittrex exchange, representing nearly 11 percent gains on the day.
Despite the sharp gains, the cryptocurrency is still trapped in a narrowing price range, which has been in place since May 30.
As a result, the immediate outlook is neutral and a convincing break above the upper edge of the contracting triangle, currently at $209.20, is needed to revive the short-term bullish outlook.
It is worth noting that the two-week long price consolidation is preceded by a staggering rally. BSV was one of the best performing cryptocurrencies in May with prices rising from $65 to $252.20 in fourteen days to May 30.
The bulls usually take a breather following such stellar rallies, which explains the recent consolidation.
BSV has charted a pennant on the daily chart – a continuation pattern which usually accelerates the preceding bullish move.
A high-volume UTC close above $209.20 would confirm a bull breakout and open the doors to $374.
That target is arrived by adding the pole height – the rise from the May 25 low of $86.70 to the May 30 high of $252.20 – to the breakout price.
The target of $374 looks far fetched as of now. That said, with a high-volume pennant breakout, BSV could easily set fresh record highs well above the recent high of $252.20.
Supporting the bullish case is the 14-day relative strength index of 65.00. The indicator is currently looking north, having bounced up from 59.00 earlier this week. An above-50 RSI is widely considered a sign of bull market conditions.
The outlook would turn bearish if the price finds acceptance below the low of $179.48 hit on May 30, although that looks unlikely.
The bearish case will likely unfold if bitcoin, the world’s largest cryptocurrency by market capitalization, suffers a significant price drop from the current price of $8,160.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
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