Bitcoin Price Forecast 8/2/2017

Newton's third law of physics states: Every action has an equal and opposite reaction. Current MC: 98.9B and slowly falling since last night.

The past few weeks have been absolutely crazy for cryptocurrencies! First the uncertainty of a split leads to serious panic selling as the market move out of Bitcoin and into fiat. Then the rebound in prices sent a surge of investor confidence until the news of a different coin split (Bitcoin Cash) arose. It truly came out of nowhere to most people and quickly set itself among the top four on coinmarketcap.com after falling back down below Ripple. For a moment last night I saw Bitcoin Cash spike to over 12B MC which is nearly double the price it is trading at this morning. That is the definition of FOMO people :)

In today's chart you will see two dramatic sell offs that happened over the past 24 hrs. One massive drop from round $2750 back down to around $2660. The a slow pull back up to $2720 only to drop down another hundred dollars to $2610. I would attribute these sell offs to people offloading the extra Bitcoin they only picked up to secure bonus BCH coins. I can imagine there were quite a few people who only bought more Bitcoin just to be credited with the chain-split tokens and after a full day they decided to cash out their profits to fiat yet again.

I would expect to see support holding in the $2600-2650 range for today with a slight dip below very possible. With the implementation of SegWit there may be even more confusion down the road and BTC is facing an unsecure future to be honest. There might be the possibility of ANOTHER coin split if the majority cannot come together on the SegWit2X implementation which would DOUBLE the block size to 2MB rather than 1MB. SegWit (part 1) activation was just the beginning and we will have to see what the future holds!

Resistance is going to hold very strong around $2750 as it did yesterday and we should stay steady in the @2670-2720 range for the majority of the day. Keep an eye on volumes and Stochastics however as we could see a sharp retracement down to $2550 or below if there are even more sell orders to offload excess BTC. Keep in mind that the majority of the high volume trades were sell orders today.

Likely Scenarios:

• BTC drops down to $2600 range only to pull back to around $2650-2700
• BTC holds around $2650-2750 for the majority of the day
• BTC drops down below $2600 and then pulls back to $2650 range temporarily

TLDR Version:
We are seeing some profit taking from the past couple of days. Altcoins have begun to taper off and BTC is slowly dropping. Expect to see mostly red today on the exchanges. BTC should remain stable around $2650-2750 for most of the day but another sell off seems right around the corner!

Price Target:
$2720

*Never invest more than you are willing to lose and always do your own research before making any investment decisions.