Time to Short Bitcoin SV? Analyst Warns Proceed With Caution
Bitcoin SV has posted a 291% year to date increase. But has the altcoin's luck run dry? Is BSV about to come collapse?
Bitcoin SV is the New Year's breakout performer. How much gas is left in the tank? | Image: shutterstock.com
- BSV flash dump may occur soon.
- Is it time to short BSV?
- Crypto volatility is back, baby!
, it seems a few traders didnt get the memo—opting instead to pump derivative rival, Bitcoin SV. The bitcoin cash spin-off has posted a 291% year to date increase, but has its luck run dry? Is BSV about to come collapsing down? And is it time to go short?
Thats the opinion of most BSV critics today, of which there seems to be no lack of. The resounding consensus appears to be something along the lines of, short it into the ground.
One pseudonymous analyst, known as CryptoGainz, has advised exactly this, arguing that BSV bagholders are incapable of selling due to network congestion.
Despite the gigameg blocks, BSV could be clogged, | Source: Twitter
The hypothesis goes that due to a supposed blockage—resulting from the parabola of the past few days—investors are left stranded, and unable to unload. Consequently, once the network clears up, a mass scramble to realize profit could lead to a significant price crash.
One solution offered by the analyst was to hedge bets via shorting BSV futures—thus securing profits and mitigating risks.
Is Shorting BSV Worth the Gamble?
It seems the analyst wasnt alone. Over the past 24 hours, an abundance of traders have wriggled out of the woodwork to shout about shorting BSV.
BSV: To short or not to short? | Source:
In fact, right now, BSV/USD shorts on Bitfinex are at an all-time high.
BSVUSD shorts at an all-time high. | Source:
But is shorting really the best idea?
Speaking to CCN, eToros senior analyst Mati Greenspan provided some sage advice, suggesting that things may not be as innocent as first assumed:
Proceed with caution. Use proper money management and diversification…We still dont know who is doing most of the buying or how much theyve got left to burn.
After the influx of short trades came an onslaught of liquidations as BSV refused to capitulate.
The Return of Crypto Volatility
Currently, the market is oozing unpredictability. As a slight divergence from the norm, the latest price action has seen BTC and altcoins move in tow.
One prominent crypto commentator, The somewhat divisive host of Crypto Trader simply tweeted Breaking News: Its Alt season.
At the time, this prompted a barrage of criticism.
One of Neuners followers whos not buying that alt season is here. | Source:
Given the 20% boost to the total market cap of altcoins over the last few days, its hard not to agree with Neuners sentiment.
What Caused BSV to Pump?
While many altcoins look intrinsically linked to BTCs resurgence, bitcoin SV appears to be the only altcoin not latching to bitcoins coattails. It ...