The recent recovery in bitcoin price was short-lived, with the largest cryptocurrency falling below the $40,000 level. Bitcoin has once again created the retracement pattern dubbed “Bart Simpson”. So what does this herald? As Kriptokoin.com, we have compiled the details for you, let’s examine the subject together…
Bitcoin has once again created the model called “Bart Simpson”!
Bitcoin, the largest cryptocurrency, has once again printed the retracement pattern dubbed “Bart Simpson” and frustrated the bulls’ hopes. The pattern, which takes its name from the shape of the haircut of the character in the most successful animated series of all time, is formed by a sharp decline after a sudden price increase. Cryptocurrency analyst Alex Kruger tweeted on Tuesday, “Another Bitcoin Bart model… Surprising.”
Earlier today, the top coin rallied around $41,800 and printed a large green candle on its hourly chart. Shortly after that, a red candle of equal size appeared. At press time, Bitcoin is trading just above the $39,000 level. Galaxy Digital CEO Mike Novogratz recently stated that Bitcoin will continue to underperform in the near future due to risk-free market sentiment. But the billionaire still believes that BTC could be worth half a million dollars in five years.
BTC and markets are waiting for the FED’s decision!
The US Federal Reserve is expected to announce its first rate hike in years on Wednesday. A 25bps increase seems to be priced in by the market, but there’s always room for surprises. Unless the FED initiates a tightening cycle on March 16, it will give Bitcoin a huge boost, but such a scenario seems unlikely.
In February, banking giant Goldman Sachs predicted that the Fed would have to raise rates seven times in 2022. The central bank is under great pressure to rein in out-of-control inflation, which has recently reached a 40-year high. The Fed’s aggressive shift to tightening paints a grim picture for tech stocks and risk assets like Bitcoin.
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