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Bitcoin prints second ‘Bart’ pattern in a week to bottom at $29,200

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The bears took control around 01:00 (GMT) on June 7th to drive down the price of bitcoin. The ensuing sell-off eased at 0300 GMT, by which time Bitcoin had lost 7% of its value to a low of $29,200.

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This price action takes Bitcoin well below the 50-day simple moving average, widely interpreted as a downward trend change.

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The bullish rebuff was broken at 09:00, as evidenced by the long upper wick, larger than the size of the candle body, on the hourly candle.

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Since then, a downtrend pattern has formed and the Relative Strength Index (RSI) is showing a horizontal reading near 30, on the verge of being classified as oversold.

The price movement led to the formation of the second Bart pattern just a week after the last one closed in early June.

bitcoin hourly chart
Source: BTCUSD on TradingView.com

Bitcoin repeats the Barth pattern again

The Bart Simpson pattern is a short-term chart pattern characterized by a sharp rise, usually over a shorter time frame such as 30 minutes or an hour. There is a period of sideways movement followed by a steep pullback to erase all previous gains.

Trader James Rkay said that the emergence of the Barth pattern is sometimes associated with institutional manipulation. He warned that the manipulators intended to confuse retail traders and follow their counter orders.

Long Bitcoin traders suffered 24-hour liquidations totaling $129.2 million, according to the data analytics platform. coin glass. This is significantly less than the long liquidation that took place during the last Bart pattern of $292 million.

Bitcoin Liquidation
Source: coinglass.com

Now what?

When Bitcoin bounced back $30,000 at the end of May, a new view formed among some investors that the crypto winter would be short-lived.

However, Bitcoin is currently well below the 50-day moving average and below $30,000 again.

@rektcapital commented that the BTC uptrend will resume after the 50-day moving average recovers.

However, there is every reason to believe that continued selling will cause the price to fall towards the 200-day moving average, which is “maximum financial opportunity‘, says the analyst.





Credit : cryptoslate.com

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