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3 reasons Bitcoin suddenly dropped 3% in 1 hour and recovered

Published 10/25/2020, 07:42 AM
Updated 10/26/2020, 09:40 AM
3 reasons Bitcoin suddenly dropped 3% in 1 hour and recovered

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.

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 as more miners moved BTC to exchanges.

2-hour price chart of Bitcoin with key support levels. Source: TradingView, Michael van de Poppe
Bitcoin Fear & Greed Index. Source: Alternative.me
Weekly price chart of Bitcoin. Source: TradingView.com

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