The price of Bitcoin broke below the major support area at USD 2300 and immediately after a next sell-off wave begun, reaching almost USD 1800 mark. This is a USD 500 drop in just 2 days!
So why Bitcoin is losing so much in value and so fast? It all comes to the major news release on the 1st of August 2017 – User-Activated Soft Fork (UASF). You can read more about it here.
The nearest Bitcoin future remains unclear especially with the risk of a potential network split and huge price volatility. This uncertainty seems unacceptable for investors, forcing them to move out of Bitcoin into safer assets, whether USD, Gold or Altcoins
While investors are selling their Bitcoins, its’ value continues to move lower. This tendency will remain unchanged until investors will have a clear view on the Bitcoin path after the news release and confidence in Bitcoin will be restored.
Speaking of the Bitcoin decline, technically speaking there are two major support areas that should be watched. The first area is USD 1800 and second USD 1650. Whether either of these levels will be rejected or broken is remains to be seen after the 1st of August.