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

Three factors likely triggered a quick decline in the price of Bitcoin on Oct. 25.

The $13,300-$13,500 range is a key resistance area for Bitcoin in the short term.

Throughout the past week, data from ByteTree shows Bitcoin miners have been selling more than they mine.

Some technical analysts anticipated the price of Bitcoin to rise to around $13,500 before seeing a pullback.

The Bitcoin Fear and Greed Index is also showing "Extreme greed" in the market, which makes a healthy pullback a positive trend for BTC.Weekend trading typically spurs volatility.

During the weekend, particularly on a Sunday, the volatility of Bitcoin and the cryptocurrency market tends to increase.

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.

While BTC continues to see high volatility, the optimism surrounding its high time frame log charts are buoying the general market sentiment.

One popular technical analyst known as "Squeeze" emphasized that the macro view of Bitcoin remains optimistic, particularly as exchange BTC balances continue to drop reducing available supply.

"Bitcoin's macro view remains bullish as the Exchange $BTC Balances continue to decline sharply since March There's also around 136k BTC currently locked in WBTC/RenBTC.".