3 reasons why Bitcoin price quickly recovered after dropping to $15.7K

摘要： Bitcoin price abruptly dropped to $15,670 before traders stepped in to defend the $16,000 level.

The price of Bitcoin (BTC) dropped to as low as $15,670 on Binance on Nov. 15. The highly volatile drop came hours after BTC reached $16,355, demonstrating strong momentum.

Three key factors likely caused the overnight drop in the price of Bitcoin. The three potential factors are a weekend shakeout, the daily moving average (MA) retest, and a retest of the parabola.

Weekend shakeouts and lower support retests are healthy

As Cointelegraph reported, algorithmic traders expected a weekend drop in the Bitcoin market to materialize.

There was a stack of sell orders above $16,500 which were not pulled when the price neared $16,400. This meant that the orders were genuine sell orders, applying selling pressure on the cryptocurrency market.

Atop the market structure that likely encouraged traders and bots to short, on-chain analyst Willy Woo said the weekend volatility is bullish.

He said that shaking off “bearish technicals” is expected, but the market still remains in the “buy the dip” territory. He wrote:

“Weekend trading setup: Shaking off some bearishness technicals (4h RSI div, 8h TD9). Short and mid term on-chain fundamentals bullish, more coins scooped off exchanges, more users arriving. Buy the dip scenario.”

......

詳見全文Full Text： cointelegraph.com

若喜歡本文，請關注我們的臉書 Please Like our Facebook Page： Big Data In Finance