Why Bitcoin price just lost $16K in a 'typical' weekend drop

The price of Bitcoin has seen volatility within the past 12 hours.

As of Nov. 14, the 20-day moving average of Bitcoin on the daily chart is at $14,600.

An algorithmic trader known as "CryptoGainz" explained that the current market structure of Bitcoin likely caused a sell-off to occur.

The trader pinpointed the abundance of sell orders at $16.5K that did not subside as BTC hit $16,400.

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 key support or resistance levels.

If traders place large spoof orders near a resistance level, there is a chance that buyers would not push through the resistance.

The trader noted that algorithms could move to "Hunt" stops of long contracts if it is profitable to do so.

"Meaning, if an algorithm exists that can profitably dump price and flush longs, the conditions for its use are possibly being engineered in a manner so as to extract the maximum amount of profit. tl;dr - as soon as it's profitable to hunt longs, your stops are getting taken."Where BTC price may go next.

The outlook of Bitcoin among traders and analysts remains mixed.