Bitcoin (BTC) price fell to $ 15,670 on November 15 at Binance. The highly volatile decline came hours after BTC hit $ 16,355, showing solid momentum.
Three key factors are likely to have caused this fall in Bitcoin prices overnight. The three possible factors are a weekend shake that retests the daily moving average (MA) and retests the parabola.
Weekend shakes and retesting ground support are healthy things
As Cointelegraph reported, Algorithmic traders are expected to see the Bitcoin market decline over the weekend.
There were a ton of sell orders for $ 16,500 that didn’t go away as the price neared $ 16,400. This meant that these orders were real sales orders. Applying selling pressure in the cryptocurrency market.
In addition to the market structure that likely encouraged traders and bots to go short selling, chain analyst Willy Woo was He said the weekend volatility was a bit bullish.
Expect a jolt from the “technical bear”, But the market is still in the “buy the dip” area. Wrote::
Weekend Trade Setup: Get rid of some bearish technical details (4-hour RSI, 8-hour TD9). The chain’s fundamentals are bullish in the short and medium term, with more coins leaving the exchanges and more users arriving. Buy the scene of autumn.
Buying during a dip reflects the upward momentum
On the daily chart, The decline to $ 15,600 confirmed a retest of the 10-day moving average. The retest was important because last week after a big price increase BTC retested the same moving average before moving higher.
If the price of Bitcoin continued to fall below the 10-day moving average, it would have meant a deeper drop. However, the immediate rebound from the levels it rebounded from in the November 7th crash is positive for the relatively short term.
On November 7, BTC saw a similar decline, albeit in a different price range. The price fell from $ 15,753 to $ 14,344, down 5%. The market-leading cryptocurrency also rebounded from the 10-day moving average on the daily chart on this occasion.
In the next few days after that BTC hit a two-year high of $ 16,480, which confirmed a strong pause.
Parabolic climbs need new evidence
Josh Olszewicz, Technical analyst for chartists and cryptocurrencies, shared a graphic where you can see Bitcoin is in a parabola.
During a parabolic ascent The dynamics of an asset continue to increase as its price rises. However, if the parabolic cycle is interrupted, the asset may be at risk of major pullback.
The Bitcoin parable will remain as long as BTC manages to stay above the $ 15,300 to $ 15,500 range.
Traders and technical analysts have reported similar levels over the past 24 hours. Michael van de Poppe, a full time trader on the Amsterdam Stock Exchange, said Likewise, the $ 15,500 support level remains key for BTC in the short term.
Short term, Bitcoin should see sustained resistance above $ 15,500 and successfully defend the $ 15,700 support as it has for the past 24 hours.