{"id":97170,"date":"2020-10-25T14:42:50","date_gmt":"2020-10-25T11:42:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-bitcoin-suddenly-dropped-3-in-1-hour-and-recovered\/"},"modified":"2020-10-25T14:42:50","modified_gmt":"2020-10-25T11:42:50","slug":"3-reasons-bitcoin-suddenly-dropped-3-in-1-hour-and-recovered","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-bitcoin-suddenly-dropped-3-in-1-hour-and-recovered\/","title":{"rendered":"# 3 reasons Bitcoin suddenly dropped 3% in 1 hour and recovered"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3f3bff99d77\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3f3bff99d77\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-bitcoin-suddenly-dropped-3-in-1-hour-and-recovered\/#The_13300-13500_range_is_a_key_resistance_area_for_Bitcoin_in_the_short_term\" >The $13,300-$13,500 range is a key resistance area for Bitcoin in the short term<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-bitcoin-suddenly-dropped-3-in-1-hour-and-recovered\/#Futures_and_options_markets_are_neutralizing\" >Futures and options markets are neutralizing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-bitcoin-suddenly-dropped-3-in-1-hour-and-recovered\/#Weekend_trading_typically_spurs_volatility\" >Weekend trading typically spurs volatility<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons Bitcoin suddenly dropped 3% in 1 hour and recovered <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">Three factors likely triggered a quick decline in the price of Bitcoin (BTC) on Oct. 25. First, traders pinpoint the $13,300 to $13,500 area as a major resistance range. Second, futures and options markets are neutralizing. Third, weekend trading is seemingly amplifying volatility.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_13300-13500_range_is_a_key_resistance_area_for_Bitcoin_in_the_short_term\"><\/span>The $13,300-$13,500 range is a key resistance area for Bitcoin in the short term<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before the sudden price drop occurred, BTC soared from $13,127 to $13,350. The dominant cryptocurrency rallied swiftly to an area of interest for sellers\u00a0as more miners moved BTC to exchanges.<\/p>\n<p>Throughout the past week, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/terminal.bytetree.com\/bitcoin\">data from ByteTree<\/a> shows Bitcoin miners have been selling more than they mine. <\/p>\n<p>BTC possibly saw a sharp correction as it surged to a key resistance range, which sellers aggressively defended.<\/p>\n<p>Some technical analysts anticipated the price of Bitcoin to rise to around $13,500 before seeing a pullback. Before the volatile price action occurred, cryptocurrency trader Cantering Clark <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CanteringClark\/status\/1320051078189223936\">said<\/a>:<\/p>\n<blockquote><p><strong>\u201c<\/strong>Upside borrowing\/leveraged long exposure will be more prevalent the further up this goes, but right now futures are consistently extended from spot and the friction is obvious. Maybe get one more pop up 13.5-13.8 before a nice sized pullback.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/07243f68-63c5-4254-a935-7d204ab2bfa1.png\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>2-hour price chart of Bitcoin with key support levels. Source: TradingView, Michael van de Poppe<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Futures_and_options_markets_are_neutralizing\"><\/span>Futures and options markets are neutralizing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After the week-long rally, the futures market started to show signs of overheating. Although the funding rate of BTC remained at an average 0.01% level, alternative cryptocurrencies demonstrated high funding rates.<\/p>\n<p>The overall cryptocurrency futures market needed pullback to reset or cool down the funding rates of top cryptocurrencies. The Bitcoin Fear and Greed Index is also showing &#8220;extreme greed&#8221; in the market, which makes a healthy pullback a positive trend for BTC.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/85cc146e-2db1-47c5-9603-392c1832035d.jpg\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>Bitcoin Fear &amp; Greed Index. Source: Alternative.me<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Weekend_trading_typically_spurs_volatility\"><\/span>Weekend trading typically spurs volatility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Meanwhile, the options market also faces expiration worth $750 million in about six days that could trigger volatility.<\/p>\n<p>During the weekend, particularly on a Sunday, the volatility of Bitcoin and the cryptocurrency market tends to increase.<\/p>\n<p>There are many potential factors that could cause volatile price movements to occur. Two main factors are lower the volume during the weekend and the anticipation of the Sunday weekly candle close.<\/p>\n<p>If the price of Bitcoin stays over $12,000 in the next 15 hours, it would mark the first weekly candle close above $12,000 since January 2018. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/549c3685-de54-4e81-bd9d-b11faf998d4c.png\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>Weekly price chart of Bitcoin. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<p>As such, while BTC continues to see high volatility, the optimism surrounding its high time frame log charts are buoying the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> market sentiment.<\/p>\n<p>One popular technical analyst known as &#8220;Squeeze&#8221; emphasized that the macro view of Bitcoin remains optimistic, particularly as exchange BTC balances continue to drop reducing available supply. He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cryptoSqueeze\/status\/1320311097019121664?s=20\">said<\/a>:<\/p>\n<blockquote><p><strong>&#8220;Bitcoin&#8217;s macro view remains bullish as the Exchange $BTC Balances continue to decline sharply since March (whales are not yet selling. Even at $13,000.) There&#8217;s also around 136k BTC currently locked in WBTC\/RenBTC.&#8221;<\/strong><\/p><\/blockquote>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-bitcoin-suddenly-dropped-3-in-1-hour-and-recovered\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons Bitcoin suddenly dropped 3% in 1 hour and recovered &#8221; Three factors likely triggered a quick decline in the price of Bitcoin (BTC) on Oct. 25. First, traders pinpoint the $13,300 to $13,500 area as a major resistance range. Second, futures and options markets are neutralizing. Third, weekend trading is seemingly amplifying&#8230;<\/p>\n","protected":false},"author":1,"featured_media":97171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/f3717d44-e239-40a4-a6da-7d9f23b2dcef.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74982,74939,73785],"class_list":["post-97170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/97170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=97170"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/97170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/97171"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=97170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=97170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=97170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}