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Top Trader Warns Bitcoin (BTC) Flashing Signs of Pattern Witnessed Multiple Times During 2018 Bear Market

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.”

Source: Altcoin Psycho/YouTube

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.

Generated Image: Midjourney

   

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