A closely followed crypto strategist is warning that Bitcoin (BTC) is showing a bearish pattern that was seen numerous times during the 2018 bear cycle.
In a new strategy session, pseudonymous trader Altcoin Psycho says that the 2018 Bitcoin bear market was notorious for liquidating late BTC bulls with the “Bart” pattern, or a formation that looks like the head of Bart Simpson from the cartoon series “The Simpsons.”
The pattern typically begins with a strong leg up, followed by a period of consolidation and then a subsequent sell-off.
According to Altcoin Psycho, he’s starting to see Bart patterns on Bitcoin’s low timeframe charts.
“The only thing that makes me a little bit nervous is… you’ve got this liquidity trap right here (above $30,000), and you do have quite a bit of hot air (from $19,000 to $25,000). It’s hard to say exactly if we’re going to just straight Bart down.
We are seeing that algorithm, the infamous 2018-2019 BitMEX Bart algorithm. We’re starting to see them on lower timeframes a bit… Usually when you see it on lower timeframes… you can see it pan out on the higher timeframes.”
According to Altcoin Psycho, Bitcoin already printed two Bart patterns this year on the 12-hour chart. The first one was in late January when Bitcoin rallied from around $20,000 to nearly $25,000 only to pull back all the way down to $21,000 in less than two weeks.
The trader goes on to say that Bitcoin also created a Bart pattern right after retracing to $21,000 in February as it rallied above $25,000 before correcting to $19,000 in March.
Altcoin Psycho is also warning that last week’s memecoin explosion could be a signal that Bitcoin and the crypto markets, in general, are about to witness a sell-off event.
“I think it’s pretty easy to know when the markets are in easy mode. It doesn’t take a genius to know. It’s those times when you could throw a dart board at a list of projects and you’ll make money. I think a lot of people generally when that easy mode rotation starts to become a little harder, and that’s usually when you see the memecoins pumping hard.”
At time of writing, Bitcoin is trading for $27,424.
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