- The selling pressure was increased due to the low volatility of recent months.
- The sell-off will be a short lived event.
While the crypto bears have paused, the crypto market is still feeling its harsh effects. After an unsuccessful attempt to settle above $5,600 handle, Bitcoin is changing hands at $5,567.
Bitcoin (BTC) Price Today – BTC / USD
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Brian Kelly (CEO and founder of BKCM) revealed that the strong movement has been aggravated by low volatility experienced in recent months, while the upcoming hard fork of Bitcoin Cash serves as a trigger. He explained: “People started selling. That triggered stops. Everybody got concerned. And that’s what happened today — the entire market sell-down.”
Furthermore, he said that the sell-off will be a short-lived event, being that once the fork is over, the market will begin to recover. However, new and inexperienced traders with little or no understanding of forks mechanics should avoid the market for now.
Technically speaking, when it comes to further sell-off, we are in uncharted territory. Support levels rarely happens and also, they are usually weak. This tells us that soon enough, the decline might gain traction.
