Another 51% Attack For Bitcoin SV

The controversial Bitcoin Cash hard fork – Bitcoin SV, was struck by yet another 51% attack, which is a follow-up from last month when Bitcoin SV’s network was under fire several times.

Lucas Nuzzi at CoinMetrics first announced about the attack, noting that there was some “serious hashing power” unleashed and that the malicious actors were succeeding. The attack lasted around 12 hours and the malicious party managed to reorganize as much as 14 blocks and create up to three versions of Bitcoin SV’s blockchain.

This is the latest attack on Bitcoin SV, as the blockchain saw a spike in reorganization attempts. From June 24 to July 9, an unknown operating entity engaged in a series of malicious block reorganization attacks on BSV, also known as a “block-withholding attack.” As of press time, the identities of the criminals are still not confirmed.

Bitcoin SV and one of its leaders, Craig Wright, have long suffered from the controversy around the project’s reputation and trustworthiness. Wright even proclaimed himself “the real Satoshi Nakamoto” – Bitcoin’s original creator.

Bitcoin SV’s 51% attack vulnerability is a common trait among weaker blockchains, which lack appeal to miners. A 51% attack means a single entity is controlling over 51% of the entire transaction validation power of a given blockchain. If an entity manages to secure 51% of the total hash rate, it could decide how to manipulate the blockchain – e.g. to decide which new blocks are added to the blockchain.

Numerous blockchains went through a 51% attack, including Ethereum Classic, Verge and Bitcoin Cash.

Meanwhile, the Bitcoin Association requested node operators on Twitter to invalidate the fraudulent blocks. Large crypto exchanges like Huobi, OKEx and Bittrex already suspended Bitcoin SV transactions in June, with many smaller-scale exchanges following suit. The latest attack could further activate the delisting process.

Pricewise, Bitcoin SV fell from its weekly high of $149.87 to a current price point of $136.19. Meanwhile, the drop pushed Bitcoin SV’s price below a key support zone, which means a possible price slump.

For example, Bitcoin SV’s price fell below the 50-day Simple Moving Average (SMA) on August 4, which supports the experts’ predictions.

Other technical indicators suggest Bitcoin SV may be in for a downwards ride, as the 20-day SMA at $130 is the next target for the bulls. If $130 falls, the next stop for Bitcoin SV is the 78.6% Fibonacci retracement level at $128.

If the price per BSV token slips below the Fibonacci retracement level, experts predict its price to fall as low as $110, which is BSV’s July 20 low, or lose even more.