It’s too early for fireworks, but for a moment the bitcoin shot up like a rocket this week. But the landing followed very quickly, unfortunately. What do we expect from the course next week?
The course did a “bartje”
You look at this week’s rate. Last Tuesday, the price rose by more than 500 euros, an increase of eight percent in half an hour! To then drop again with 650 euros. One thing is clear, if you have bitcoin you sometimes have to have a strong heart.
This type of price movement always ensures a lot of claim. But it’s not new in bitcoin. Some analysts call this a “Bart pattern”. That pattern is named after Bart Simpson’s head. And if you look closely you will also see his head in it:
- First the course style goes up.
- Then the course moves sideways briefly.
- Finally the course goes straight down.
To continue for a moment, here are some examples from the beginning of 2019. As you can see, reverse “bars” are also possible:
It may sound absurd, but it really is a thing in the bitcoin world. If you search for “bart pattern bitcoin” in Google, you will get articles like this.
But why does such a pattern arise? There can be various reasons. For example, analysts point to whales that manipulate the course. Or automatic trading bots that respond to a certain price.
What can also play a role is that bitcoin is a young market. Relatively little money is needed to move the market. Large players with large amounts of bitcoin therefore have relatively much power. They can buy and sell the market according to their time.
As more traders join and therefore more money goes into bitcoin, this will gradually disappear. More money is then needed to make the price move considerably. As a result, the course makes fewer violent movements than we now see.
So does the price go up or down fast? Then always think about the Simpsons.
Attempt so much to break the trend line, this time?
We zoom out considerably on the graph. Now you can see the price from the end of October until now. For a moment this week it seemed as if the course went to the moon. Yesterday the price broke through the trend line and back again, as you can see in the circle. Now the price is sanding at the bottom of the trend line. Is bitcoin still breaking the trend line this weekend? Who knows, in that case you can read what we expect at the bottom of this analysis.
Channel also valid
We zoom out even further. The bitcoin rate is still moving in a descending channel. These are two parallel trend lines, in this case downwards. And the price has been falling for a long time, since the end of June. Maybe bitcoin can finally break out in 2020?
What do we expect from the rate?
Now we combine both graphs. In fact, not much changes compared to our previous analysis on Tuesday, when the trend line and the channel were also relevant.
Does the bitcoin price break through the blue trend line? Then the price can look up the top of the channel. The next resistance is around 7,300 euros. This also depends on how fast the price rises.
But if the rate drops, we focus on the bottom of the channel. That level is now around 5,900 euros.