Bitcoin (BTC) dropped to $ 15,670 on Binance on November 15th. The volatile drop came a few hours after Bitcoin reached $ 16,355, showing strong momentum.

Three important factors may have caused the sudden drop in Bitcoin’s price. Three potential factors are weekend disruptions, daily moving average (MA) revision and plate rethinking.

Weekend vibrations and workouts with low support levels are helpful
As Cointelegraph reported, algorithm traders have expected the Bitcoin market to decline over the weekend.

There was a pile of sales orders over $ 16,500 that weren’t withdrawn as the price approached $ 16,400. This meant that the orders were real sales orders, which put pressure on the cryptocurrency market.

In addition to the market structure that may have caused traders and robots to fail, network analyst Willie Wu said volatility at the end of the week was bullish.

He said that bearish indicators are expected to clear out, but the market is still in the lower buying territory. he wrote:

Weekend Trading Kit: Ditch some bearish specs (4 Hour RSI Div, 8 Hours TD9). In the short and medium term in the chain, there is optimism, as more coins are bought from exchanges, and more users arrive. Fall text purchase. ”
The bearish buying reflects bullish momentum
On the daily chart, the drop of $ 15.6K confirmed a re-examination of the 10-day moving average. The retest was important because last week, after a big jump in prices, BTC tested the same moving average before continuing.

If the bitcoin price continues to fall below the 10-day moving average, that means more violations. But the immediate improvement from the same level it recovered from during the November 7th fall is relatively positive in the short term.

On November 7th, BTC showed a similar decline, albeit in a different price range. The price decreased from $ 15,753 to $ 14,344, which means a decrease of 5%. The dominant cryptocurrency also recovered from the 10-day moving average on the daily chart at the time.

Over the next few days, BTC continued to reach its highest level in two years at $ 16,480, confirming a strong breakout.

Equivalent growth requires review
Josh Olshevich, cryptocurrency surveyor and technical analyst, shared a chart showing Bitcoin is in the parabola.

During the equivalent uptrend, the asset’s momentum continues to increase as prices rise. However, if the parabola cycle is broken, the asset may be exposed to a significant drawdown risk.

In the short term, the bitcoin plate will remain unchanged as long as BTC remains above the $ 15,300 to $ 15,500 range.

Traders and technical analysts set similar levels over the past 24 hours. Michael Van de Pope, a full-time trader on the Amsterdam Stock Exchange, said the support level of $ 15,500 remains the key to Bitcoin in the near future.

In the short term, Bitcoin needs to maintain sustainability above $ 15,500 and protect the perfect support of $ 15,700 that it provided in the past 24 hours.

Source: CoinTelegraph