The toll of Bitcoin (BTC) has seen volatility within the past 12 hours. The superlative cryptocurrency fell from $16,400 to $15,750 within hours, rejecting sharply subsequently surpassing the $16,000 resistance earlier this week.

Every bit of Nov. 14, the 20-mean solar day moving average of Bitcoin on the daily nautical chart is at $14,600. In the near term, if a pullback occurs, the $xiv.6K level remains a favorable area for buyers.

An algorithmic trader known every bit "CryptoGainz" explained that the electric current market structure of Bitcoin probable acquired a sell-off to occur. The trader pinpointed the abundance of sell orders at $16.5K that did not subside every bit BTC striking $sixteen,400.

This could point that the sell orders at that level are non spoofed orders. Hence, it could prove that sellers are genuinely attempting to have turn a profit on BTC at effectually $sixteen,500.

The daily price chart of Bitcoin. Source: TradingView.com

Why $16.5K is a problem for Bitcoin in the near term

When traders or bots try to spoof the Bitcoin market, they place fake orders at fundamental support or resistance levels.

For instance, if traders place large spoof orders most a resistance level, there is a chance that buyers would non push through the resistance. Hence, spoofing could be used to artificially pump up or restrict a marketplace's momentum.

The "asks" or sell orders to a higher place $16,500 have not disappeared during the recent BTC rally. Considering this, the probability that $xvi.5K would act as a heavy resistance level in the nigh term remains high.

When BTC was hovering at around $xvi,200 before the Bitcoin price drib occurred, the pseudonymous trader explained:

"I wouldn't say we're going to nuke, but at this point clever proprietary entities with a lot of capital and intellectual holding of a certain nature realize that the xvi.5k asks have been resting there for a long fourth dimension and don't announced to be lifting with cost very close to there."

The trader noted that algorithms could motion to "hunt" stops of long contracts if information technology is profitable to do so. Based on the rapid decline of BTC in a curt period, that is likely what happened equally BTC dropped below $15,800. The trader added:

"Meaning, if an algorithm exists that can profitably dump price and affluent longs, the weather condition for its use are mayhap being engineered in a manner so every bit to extract the maximum amount of profit. tl;dr - as presently as it's profitable to hunt longs, your stops are getting taken."

Where BTC price may become next

The outlook of Bitcoin among traders and analysts remains mixed. Some traders say a deep pullback to the $12,000 to $xiii,000 range is inevitable, if not salubrious, during this balderdash run.

Cantering Clark, a Bitcoin trader, said a $13K retest could occur despite the potent momentum of BTC. He wrote:

"I love to get loud with everyone else when sh*t is pumping, but I am securing the bag and playing brusque term merely right now. Feeling like we are running hot, I think the market place inflicts the about hurting downwards shortly rather than up. Spot players don't get an piece of cake ride."