Bitcoin Dropped Two Percent just in One Hour

Bitcoin Dropped Two Percent just in One Hour

Let us check the crypto market. On Monday, the price of Bitcoin (BTC) declined two percent in under an hour in a sharp correction. Thus, it caught traders off guard likely because of three major technical factors.

On November 2, the price of BTC declined by two percent in under an hour in a sharp correction. Thus, it caught traders off guard. Coincidentally, the futures market of CME Bitcoin opened with a new gap. So, it made $13,100 an area of interest for sellers.

Three technical issues made the abrupt decline in the price of Bitcoin: Mas (monthly moving averages), CME gap, and significant resistance.

During the holidays and the weekend, the CME Bitcoin futures market closes. It means that if Bitcoin will see a massive price movement amid those days, a gap between cryptocurrency exchanges and CME emerges.

There is no comprehensive theory of why traders move to fill CME futures gaps. Nevertheless, most CME Bitcoin gaps have filled.

Bitcoin has seen a strong rally since October. The volume of Bitcoin tends to drop because the market becomes less active during the weekend. Nevertheless, in that case of the last few months, BTC has continuously risen upward without a dip in volume.

Bitcoin

Thus, it led to the formation of four CME gaps in a row. In the past month, every weekly candle eld to a new CME gap. It is rare for Bitcoin. Thus, it means that BTC has moved so fast even amid the weekends that new consecutive haps have been formed.

The gaps are found at $11,100, $11,505, $12,970, and $13,100. Those areas are levels of interest for sellers. Coincidently, the range between the $12,970 and $12,100 range is important are in terms of moving averages.

The next short-term moving average is the five-day moving average at $12,203 on the monthly chart of Bitcoin. Even during bull markets( throughout history) at least one short-term moving average on the monthly chart was hit before the continuation of a rally.

Since early October, Bitcoin has rallied quickly. It rose by more than twenty-five percent from $11.775 to $13,500. The pace of the uptrend meant BTC could not establish exact support levels on higher time frame charts.

Bitcoin, in the past two months, has repeated the pattern of rallying followed by a short period of consolidating. That created apparent resistance and support levels on the daily chart. Thus, it made the rally sustainable compared to previous ones.

Nonetheless, Bitcoin is still far away from notable short-term moving averages.

That is news about the crypto market.

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