Bitcoin looks bullish again and Goldman Sachs predicts BTC to reach $4000 soon. Great news?
Let's see what technical analysis can tell us about the latest development of the market.
Bitcoin finally broke out of a large consolidation pattern (red circle on the chart) and is probably heading to retest all time high (ATH) price at $3000.
If resistance there breaks out, I expect the price to jump up to just under $4000 and meet resistance there. I'll have sell orders at around $3900 just in case whales decide to dump their bags early.
According to Business Insider, this scenario is also expected by Goldman Sachs’ analysts.
http://www.businessinsider.com/bitcoin-price-goldman-sachs-2017-7$4000 could be BTC’s last bull-run before some major dumps in the market, especially with the BTC’s users fork coming on August 1rst which could result in a split of BTC into 2 currencies (and most importantly a split in hash power with dangerous possibilities of replay attacks/dumps).
For more about this important event check out this article:
https://seekingalpha.com/article/4084004-make-break-august-1st-event-coming-bitcoin-investorsOn the bear side, another possibility would be for Bitcoin to double top and retest the intermediate trendline. A break of this trendline would trigger major dumps down to re-test the primary trendline. If the intermediate trendline breaks, hedge into cash and wait for the dumps.
The good news is that if BTC were to go into new heights we’ll probably see some major rallies in altcoins, starting with Ethereum whose price, as I am very fond of reminding everybody, is correlated to BTC’s.
Again, if you want to know where Ethereum is going, look at BTC.
That’s it for today, comment and upvote if you like the content.
