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.
BTC/USD daily chart . Source: TradingView.com 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