The price of Bitcoin (BTC) has experienced volatility in the past 12 hours. The largest cryptocurrency fell from $ 16,400 to $ 15,750 in a matter of hours and fell sharply after breaking the $ 16,000 resistance earlier this week.
From November 14th The 20-day moving average of Bitcoin on the daily chart is $ 14,600. In the short term, the $ 14,600 level remains a favorable area for buyers if a pullback occurs.
An algorithmic trader named “CryptoGainz” stated that the current structure of the Bitcoin market likely triggered a sell-off. The trader pointed out the plethora of sell orders of $ 16,500 that didn’t go back when BTC hit $ 16,400.
This could indicate that sales orders at this level are not fake orders. This could show that sellers are actually trying to make a profit of around $ 16,500 on BTC.
Why $ 16,500 is a short-term problem for Bitcoin
When traders or bots try to cheat the Bitcoin market, they are placing fake orders at important support or resistance levels.
For example, When traders place large fake orders near a resistance level, there is a chance that buyers will not break through the resistance. Hence, spoofing could be used to artificially stimulate or limit the dynamics of a market.
“Inquiries” or orders to sell over $ 16,500 have not gone away during BTC’s recent rally. With this in mind, the likelihood remains high that $ 16,500 will act as a high level of resistance in the short term.
When BTC was hovering around $ 16,200 before the Bitcoin price drop, the pseudonym trader was explained::
“I wouldn’t say we’re going to make atomic bombs, but at this point, smart companies with a lot of capital and some kind of intellectual property find that 16,5,000 requests have been dormant and it doesn’t seem to be coming. the price very close there. “
/ The trader noted that the algorithms could look for long contract stops if it were profitable. Given BTC’s rapid decline in a short period of time, it is likely when BTC fell below $ 15,800. The dealer added:
That said, if there is an algorithm that can cost-effectively lower the price and eliminate longs, the terms of its use may be designed to extract the maximum profit. tl; dr – as soon as it is worth searching for a long time (contracts), your stops will be taken. “
Where BTC Price Can Go Next
The outlook for Bitcoin among traders and analysts remains mixed. Some traders say a deep retreat into the $ 12,000-13,000 range during this bullish rally is inevitable, if not healthy.
Cantering Clark, a bitcoin trader, said that despite BTC’s strong momentum, a retest of $ 13,000 could take place. The wrote::
“I love being loud to everyone else when shit is pumping, but I keep my pocket and play for short term right now. When I sense we’re heating up, I think the market will soon be causing more pain down than up. Spot players are not easy. “