BTC Fork survival kit.
Since nobody likes to read big pieces of information, I will break this analysis into 3 separate parts.
We will try to analyze what happened during previous forks (and airdrops), how did that affect BTC-USD price, and how exactly Altcoins were affected. What would be the best possible strategy, and how to avoid losses during fork?
Part #1
First of all, we need to remember that past doesn't determine the future of the market, however it gives us hints about possible market behavior.
Let's review Segwit hard fork, which occurred August 1st, 2017.
Two weeks before hardfork massive price dip happened on the 16th of July.
After that, BTC started to gain momentum and reached its peak on the 1st of August - fork date.
For next couple days, people were selling BTC which caused price drop from 2980 to 2600. In many cases, people were pouring money back in Altcoins. However, BTC started another bull movement, and reached 4985 by 1st of September
Besides that BTC was obviously overbought, market was shaken with news about cryptocurrency and exchange regulations from China. That caused massive panic and price drop from 4400 to 2961, during 14th and 15th of September 2017.
Just as during previous dip in July - it didn't last for too long. It took just two weeks for BTC to cross 5,000 USD line, and continue movement towards 6,000 psychological line. It was caused by two main factors:
Bitcoin Gold was issued on the 25th of October, however, market didn't react on it as it reacted on Segwit fork. Why? Because Segwit 2x got much larger community and media attention.
I would expect much stronger reaction on Segwit 2x fork, which is coming on the 15th of November (around 15th and 17th, depending on blocks and timezone).
If BTC is getting ready for another bull run before fork, we might see BTC going over $7,000.
In Part #2, we will examine possible scenarios and trading strategies for BTC-USD and BTC-Altcoins before, and after Segwit 2X fork
BTC Fork survival kit.
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