BTC traders caught off guard: 3 reasons Bitcoin dropped 2% in just 1 hour

The price of Bitcoin declined by 2% in under an hour in a sharp correction on Nov. 2, catching traders off guard.

Coincidentally, the CME Bitcoin futures market opened with a new gap, making $13,100 an area of interest for sellers.

Three technicals reasons likely fueled the abrupt decline in the price of Bitcoin: CME gap, major resistance and monthly moving averages.

The CME Bitcoin futures market closes during the weekend and on holidays.

While there is no comprehensive theory as to why traders move to fill CME futures gaps, historically, most CME Bitcoin gaps have filled.

Every weekly candle in the past month led to a new CME gap, which is rare for Bitcoin.

Bitcoin has rallied quickly since early October, rising by more than 25% from $11.775 to $13,500.

In the past two months, Bitcoin has repeated the pattern of rallying followed by a short period of consolidating.

On the weekly and monthly chart Bitcoin is still far from notable short-term moving averages.

Some traders said they were surprised by the intensity of the Bitcoin price drop when it occurred.