Bitcoin was launched in 2019; after that, it has been facing issues with scalability and transaction rates. Some of the community members believe the implementation of Lightning Network and SegWit are threats to the scalability and validity of the Bitcoin protocol. According to Bitcoin SV developers, the only way to solve scalability is to increase the size of the Bitcoin block.
In this way, developers rejected the original protocol design and switched to a newly developed off-chain processing solution for Bitcoin SV. However, it is believed that BSV is the original continuation of the Bitcoin blockchain network, but it differs in many aspects.
The scalability of Bitcoin Cash is not enough to meet the requirement of the Bitcoin network, so developers increase the block size up to 2GB by creating a hard fork called Bitcoin SV. The original Bitcoin has a block of 1MB, which means it is a futuristic step taken by Bitcoin SV developers.
However, another similarity can be regarded as a downside because Bitcoin and Bitcoin SV both run on the Proof of Work consensus, where miners earn block rewards for mining new blocks to the network. It is a financial incentive that enables miners to allocate their resources for mining. However, the block rewards gradually decrease over time. Besides that, the Proof of Work consensus is not eco-friendly.
If you compare the transaction speed, Bitcoin SV offers 300 to 2500 transactions per second, whereas Bitcoin can complete only five transactions per second. Now Bitcoin SV is focusing on a fixed protocol structure where investors get stability and perspective for the future return on investment.
While writing, BSV was trading at $55.45, which has been forming higher highs. Earlier in May, the BSV coin was trading very close to its ATL; however, now, the price has increased marginally. On the daily chart, Bitcoin SV broke the Bollinger Bands on August 19, but it is recovering from that level. BSV is now trading around the baseline of the Bollinger Bands.
MACD is giving bearish signs as it is trading below the Signal Line on the daily chart. $63 is a resistance level; however, Bitcoin SV may cross this level in a few weeks. As RSI is 42, we think it is a good time to invest for the short term.
Even on the long-term chart, BSV has been forming higher highs with positive RSI and MACD. Although, the length of the candlesticks is quite small, indicating less trading activity in the coin.
Candlesticks are forming around the baseline of the Bollinger Bands, which indicates negative momentum on the chart. Still, we think it is a good time to invest for the short term with a target and stop loss, but you should invest for the long term when it crosses the crucial resistance.
