Can BTC Withstand the next Hard Fork?

BTC Rally before the hard Fork?

The next hard fork for bitcoin is expected in mid November, 2017. Some are suggesting BTC is due for another rally as we have seen in prior forks, however, there is a risk for heavy selling in BTCUSD based on the weekly chart.

Please click on the chart to enlarge:

Can BTC Withstand the next Hard Fork?

BTCUSD Daily Chart 01/11/17

The weekly chart signals the risk of bitcoin falling sharply towards $5,700 if the high ($6,305) holds on Sunday at 22:10 GMT. There is also a risk for further selling towards $4,900 should $5,700 give way. The outlook for bitcoin has changed following the recent dip we discussed in our prior crpyptocurrencies forecasts that was corrected by the market.

At the time of this writing we suspect the selling may be triggered due to the upcoming hard fork. Bitcoin will have to trade above $6,320 at next Monday in order to invalidate the potential reversal signal we are noting from the chart.

Based on the daily chart (not the weekly chart as discussed above) is appears BTCUSD has reached a potential resistance level at the time of this writing. Should Bitcoin fail to trade above the potential resistance (marked in orange on the daily chart) at 22:10 GMT corrective weakness may materialize following the daily close.

Ethereum: A breakout is imminent

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Can BTC Withstand the next Hard Fork?

ETHUSD 4hr Chart 01/11/17

As opposed to bitcoin ETH/USD may is trading inside a range at the time of this writing. The pattern we are noting on the 4hr chart is a common layout for a technical breakout. Once the price breaks below or above the black lines in the chart we would expect the trend to continue.

A break to the upside may trigger further gains towards $315 while a break to the downside may expose $277. Some intraday traders may attempt to to enter ethereum upon a re-test of the lower black line, our preference would be a breakout approach.

Ripple Coin: Tight Price Range

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Can BTC Withstand the next Hard Fork?

XRPUSD Daily Chart 01/11/17

We updated XRP/USD support as in our prior cryptocurrencies signals and strategies the support level was too high. The price did find support. however. the outlook is still fragile at the time of this writing. The price is held in an unhealthy range and that could continue for some time.

Very similar to ethereum a breakout is required to provided fresh momentum in ripple coin. We marked the key levels on the daily chart but we suspect the tight range may continue for several days.

We will update our projections and strategies in accordance to the progress of the above cryptocurrencies.

Last Updated on November 4, 2017