3 Fundamental Factors Can Bring Bitcoin SV To A New Low

3 fundamental factors can heavily influence the price of Bitcoin SV as it was held up in the middle of the global economic crisis that we are currently in. The fifth-largest crypto by market cap is up by 90 percent on a year-to-day basis but it just underwent a supply rate cut so it is trying to maintain the medium-term bullish bias with the help of key technical support levels.
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The metrics that usually make the asset bullish, cannot be seen on the Bitcoin SV market right now. During the first two weeks of this month, Bitcoin SV was trading between $141 and $201 but the range has dropped to $167 and $212 according to the Bollinger Bands seen on the daily chart. This indicator measures the volatility of the asset by referring to the gap between the deviations which means, the bigger the gap – the higher the volatility.

When the Bollinger Bands tighten, it means that the asset is trading in a tighter trading range which usually leads to a price breakout. A smaller level of volatility is a piece of good news for Bitcoin SV because it shows that the altcoin is getting more stable. In the case of Bitcoin SV, the indicator suggests that the market is running out of steam and that a breakout on both sides is possible if the BB bandwidth gets close to 0.10. At the time of writing, the Bollinger Bands Bandwidth was standing at 0.24.

The possibility of Bitcoin SV getting in a downtrend is higher because of the bad market fundamentals. The hash rate of the network and the measure of the miners’ performance decreased after the reward halving. The data shows that the Bitcoin SV blockchain decreased the supply and this is hurting the profits of the miners which makes them switch blockchains and get better returns.

This scenario only weakens the Bitcoin SV blockchain security so fewer miners are making the network more centralized and easy to get attacks, which is a bearish element for BSV. The likelihood of going to a price breakdown also increases because of the lower trade volume. This is a sign that the traders are staying out of the market and there are fewer users that are maintaining the BSV YTD gains.

In a recovery market, the low volume shows that the traders are worried about a price top which always leads to a correction. If the market is rising, the lack of long positions can result in low volumes. This puts Bitcoin SV at risk of even more declines. Another one of the 3 fundamental factors is that BSV could fall even further because of profit-taking.