Bitcoin (BTC) price has fluctuated in the past 12 hours. The higher cryptocurrency dropped from $ 16,400 to $ 15,750 in a matter of hours, plummeting after breaking the $ 16,000 resistance level earlier this week.
On November 14, Bitcoin’s 20-day moving average on the daily chart was $ 14,600. In the short term, in case of a reversal, the level of $ 14.6 thousand will remain favorable for buyers.
An algorithmic trader known as “CryptoGainz” explained that Bitcoin’s current market structure triggered a sell. The trader found many sell orders worth $ 16,500 that did not decline when BTC hit $ 16,400.
This may indicate that sales orders at this level are not false. Thus, it can be shown that sellers are indeed trying to profit from BTC of around $ 16,500.
Why $ 16.5000 is a Short Term Problem for Bitcoin
When traders or robots try to trick the bitcoin market, they place false orders at key support or resistance levels.
For example, if traders place large false orders near a resistance level, there is a chance that buyers will not push resistance. Thus, plagiarism can be used to increase or artificially restrict market dynamics.
“Orders” or sales orders over $ 16,500 did not disappear during Bitcoin’s recent rally. Given this, the likelihood that the $ 16.5,000 level will become a strong resistance level in the short term remains high.
Since BTC was hovering around $ 16,200 before the Bitcoin price drop occurred, the pseudonymous trader explained:
“I don’t mean to say that we are going to launch nuclear weapons, but at the moment, reasonable properties with a lot of capital and intangible real estate of a certain type have realized that the order for 16,500 people has remained there for a long time and does not seem to come close to price. ”
The trader noted that the algorithms can switch to “tracking” long breaks in contracts if it is profitable. Based on the rapid decline in BTC over a short period of time, this probably happened when BTC fell below $ 15,800. The trader added:
Where BTC Price May Be In The Next Trend
The outlook for Bitcoin remains mixed among traders and analysts. Some traders say that going deep into the $ 12,000-13,000 range is inevitable, if not healthy, during this trend.
Bitcoin retailer Cantering Clark said the $ 13,000 test could be repeated despite strong Bitcoin momentum. He wrote:
“I like to raise my voice with everyone when the pump is pumping, but I keep the bag and only play in the short term. Since we feel like we’re hot, I think the market is causing most of the pain soon, not at altitude. players are taking a tough ride. “