The price of Bitcoin (BTC) has seen volatility within the past 12 hours. The top cryptocurrency fell from $16,400 to $15,750 within hours, rejecting sharply after surpassing the $16,000 resistance earlier this week.
As of Nov. 14, the 20-day moving average of Bitcoin on the daily chart is at $14,600. In the near term, if a pullback occurs, the $14.6K level remains a favorable area for buyers.
An algorithmic trader known as “CryptoGainz” explained that the current market structure of Bitcoin likely caused a sell-off to occur. The trader pinpointed the abundance of sell orders at $16.5K that did not subside as BTC hit $16,400.
This could indicate that the sell orders at that level are not spoofed orders. Hence, it could show that sellers are genuinely attempting to take profit on BTC at around $16,500.
The daily price chart of Bitcoin. Source: TradingView.com Why $16.5K is a problem for Bitcoin in the near term
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