Despite Goldman Sachs’ latest bullish Bitcoin prediction (I), the possibility of a major BTC dump caused in anticipation of the coming BTC fork must be taken very seriously (II). A major Bitcoin dump would spell havoc in already vulnerable crypto markets like Ethereum (III) that is why I advise patience and sitting on cash until BTC’s scaling drama resolves (IV).

I) Taking Goldman’s bullish prediction with a grain of salt:

BTC’s price broke out of a major bear channel and successfully retested prior resistance turned support so we could potentially see a rally to $3000 or even higher. I explored this scenario in my latest article:

https://steemit.com/cryptocurrency/@tradealert/bitcoin-bullish-again-goldman-sachs-sees-bitcoin-going-to-usd4000

It seems like Goldman’s prediction is starting to come true, however, it is entirely possible that this very article is an attempt by Goldman to push the BTC market for one last bull run so as to allow a strong exit for the smart money before the user activated fork in August 1st.

I do believe that Goldman and other major banks hold BTC and will dump their bags around the $3915 area.. as they have announced. So there you go, set your sell targets accordingly.

On the bear side however, the RSI is showing major divergence in price. That is the buying pressure is currently higher than during the last peak while the price remains lower. Such divergence is usually the sign that the market is going to correct down. The correction could come to retest support but if it were to break down support than we’ll probably see some more blood in the market.

II) Preparing for BTC’s users-activated fork (UASF):

Simply put: on August 1st, the BTC network will undergo a fork which could result in the creation of multiple versions of Bitcoins.
For more background information on this you can consult this very well written article published on Bitcoin Magazine:
https://bitcoinmagazine.com/articles/countdown-segwit-these-are-dates-keep-eye/

THIS IS A MAJOR EVENT FOR CRYPTO MARKETS.

If BTC's chain does split, rival factions may then engage in a cyber-war by dumping the versions of BTC they do not support hence wrecking prices across the board.

In anticipation for this event it is very likely that the smart money will exit BTC in the weeks leading up to August 1st, which will result in major dumps in BTC.

III) Altcoins in danger:

If BTC does have a major dump, expect:

1. The dollar AND BTC value of most altcoins to get wrecked since they’re all correlated to the price of Bitcoin;

2. Ethereum to dump hard because its price is correlated to Bitcoin's (see chart below);

3. GREAT TRADING OPPORTUNITIES...which I am going to explore now.

IV) Prepare for warfare:

To prepare for the fork, I have opted to convert 50% of my crypto into cash which is sitting on exchanges, ready to pounce and buy dips, sell on the bounce and do all sorts of acrobatic trading.

I will probably stay into cash until the BTC fork drama resolves and the dust settles. Right now, there is simply too much risk and not many opportunities left to make insane profits like there was a few months ago when everything went from garbage to gold.
Hence my decision to take real profit out of the market and wait out the storm.

Remember, you’re just a crypto paper millionaire until you have taken real profit in a stable currency, that is: fiat.

As much as I love crypto markets, these have become highly risky now than everything is up so high so I am feeling much safer hedging into some cash and prepare for the next market cycle.

Be sure I’ll be the first to buy back into Ethereum if it drops back down to $10 because I do love the technology, but since we are in a bubble I just want to get ready and have a plan for when it pops, which could be very...very soon.

Dan @tradealert

If you liked the content, go ahead and comment, upvote and follow.