Bitcoin crash won't last long - Brian Kelly says
|- Low volatility of the recent months increased the selling pressure.
- $5,700 and $6,000 levels are in focus.
While the crypto bears hit a pause button, the cryptocurrency market is still in the red. Bitcoin is changing hands at $5,567 after a failed attempt to settle above $5,600 handle.
BKCM founder and CEO Brian Kelly says that the strong movement has been exacerbated by low volatility of the recent months, while the upcoming Bitcoin Cash fork serves as a trigger.
"People started selling. That triggered stops. Everybody got concerned. And that's what happened today — the entire market sell-down.," he explained
This sell-off is going to be a short-lived event as the market will start recovery once the fork is over, Kelly added. However, novice traders with a poor understanding of forks mechanics should stay away from the market for the time being.
Looking technically, we are in uncharted territory when it comes to further sell-off. Support levels are rare and weak, which means that the decline might gain traction pretty quickly. The first barrier lies with Pivot Point 1 month Support 3 under $5,300. A sustainable move lower will bring $5,000 into focus.
The upside direction is more crowded with the nearest resistance spotted on approach to $5,700. It is strengthened by previous 4 hours high and Bollinger Band 4-hour Lower. Once it is cleared, the recovery may be extended towards critical $6,000.
BTC/USD, 1-hour chart
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