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Barts Pattern: How to Identify it and Live with It on Crypto Markets

Barts Pattern: What Is It And How To Work With It?

If you look at a short-term Bitcoin’s chart, you can see abrupt moves or ‘bump’ in one direction accompanied by stabilization and a swift ‘bump’ in the other course. The chart ends nearby the initial price.

Appearing on non-crypto markets as well, the trend is called Bart as the asset’s rate pattern resembles the Barts’s Simpson head, a famous cartoon character.

As the trend significantly impacts the short- and the mid-term positions, it’s critically helpful to identify it. Generally, it occurs due to a vast amount of Bitcoin orders within a few minutes, resulting in the BTC price change. Although it may occur to any cryptocurrency, it mostly relates to Bitcoin for a few reasons. One of them is BTC’s considerable fluctuation, and another one is harsh BTC price changes affecting the whole altcoins market as well.

Appearing as hikes, such rate jumps may well derail the entire crypto margin traders’ activity, both short- and mid-term, through market manipulation. Although many people still think that the exchanges force this phenomenon by themselves (it’s highly probable because of regulations weakness), it may also be caused by large crypto-traders, or “whales”.

The pattern may also appear in the reverse direction, showing the upside and downside of Bart’s head. Here, the rate drop is followed by the spike, showing the so-called bullish consolidation pattern.

How Barts affect the market

BTC Exchange-traded fund: Such fluctuations may be one of the reasons why authorities like SEC haven’t still recognized the BTC’s exchange-traded funds. The thing is that the cryptocurrency market is still easily affected and poor and weak, although traders and investors believe different. As the large traders are able to cause the rate surges at any time, market analysts usually call a crypto market the “whales’ playground”.

Miners’ activity: With all the twists and turns like Bitcoin halving in May 2020, miners still stay active. As they have to cover the costs for electricity and mining equipment with the rewards they receive for blocks calculation, they have to benefit from their assistance at keeping the BTC blockchain alive. Given that, the BTC rate manipulation may significantly impact their revenues and energy to survive.

How to stay alive with Barts

Now let’s find out how the tradesmen can survive on this phenomenon depending on their activity.

  • Traders dealing with mid- and long-term positions have more chances to stay safe and sound as Bart attacks them less;
  • Traders in short-term positions with prospects for margin trade on exchanges like Bitmex or Bitfinex may end up with a vast amount of stop losses and liquidation prices;
  • When observing an abrupt movement carrying the stabilization with itself, remember the Bart phenomenon and how it shifts the asset price to the other side.

We hope our overview will help you overcome the market volatility and keep your trading expertise active and growing.

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