A sudden drop in the price of Bitcoin had touched $15,670 prior to the defense of $16,000 by traders.
On Sunday, 15th November, it was seen on Binance that Bitcoin (BTC) stock price had its value lowered to $15,670. This was an extremely unpredictable decline for BTC. This drop happened after a few hours since Bitcoin had successfully been able to touch quite a high level of $16,355. This momentum was considered to be very strong and stable. Unfortunately, Bitcoin could not hold their momentum and witnessed a rapid decline in its price which came as a huge shock to them, their investors, and the entire stock market.
3 Major Factors For Bitcoin Decline
We have considered and compiled the three most significant factors for this sudden drop in BTC price that took place over a very short period. Those 3 reasons include a shakeout of the weekend, re-test from the parabola, and the retest of the day-to-day moving average.
Weekend Overhaul And Retests Of Lesser Support Is Healthy
It was reported that the traders had done their algorithm and expected a decline of Bitcoin price that would materialize this weekend.
Several orders of ‘sell’ was made that was touching more than $16,500. However, those stack orders remained from getting pulled after the price almost touched a very high of $16,400. This was considered real intended orders of ‘sell’ which put some pressure to be sold upon the entire market of cryptocurrency.
On top of that, the structure of the market happened to encourage the traders as well as the bots positively. Willy Woo, an analyst, was heard talking about the volatility of Bitcoin which appeared to have a bullish trend.
According to Woo, since the stock market favors a ‘buy the dip’ trend as of now, it was a good call to shake off the technical of being bearish, as was expected from BTC. He also added that this volatile dip in price by dropping the bearish trend and picking up bullish fundamentals will attract more investors and users for Bitcoin.
A Bullish Trend Is Reflected By Dip-Buying
The everyday statistics reveal a sharp decline to $15.6k. This drop confirms the ten-day moving average retest that takes place. This retest was very significant because, for the last one week, Bitcoin had experienced a huge upsurge in their price. BTC had retested the very same ten-day MA even before the continuation.
BTC saw the same pattern of decline on 7th November when the price suddenly decreased to a very low of $14,344 right up from a whopping $15,753 that showed a decline of a massive 5%. Nonetheless, BTC price increased to $16,480 within the following few days.
BTC has maintained a price range of $15,300-$15,500 and is expected to keep the level of support of $15,500.
BTC will have a stable future if they maintain these levels.