Bitcoin Faces Potential ‘Bart Simpson’ Move Amid Market Caution
Bitcoin (BTC) is currently hovering around $63,840 as of August 26, after a surge to $64,800 in the early morning of the Asian trading session. However, analysts are warning that recent gains might not hold. Bitcoin surged above $64,000 last Friday, following encouraging signals from the U.S. Federal Reserve about potential interest rate cuts in September, the first since 2019.
Initially slow to respond, Bitcoin reached nearly $65,000, its highest in two weeks, before settling lower. However, popular trader CrypNuevo urged caution, noting that order book liquidity suggested a drop to support levels, which could liquidate recent long positions. He pointed to $63,500 and $62,200 as key levels, referencing the 50-period exponential moving average on the 1-hour chart.
CrypNuevo suggested that Bitcoin might form a classic “Bart Simpson” pattern, returning to the EMAs on 1-hour and 4-hour timeframes. This move could trap breakout traders and stop short positions before a potential long squeeze to support.
However, Crypto Chase advised caution, stating that clean retests like $62.7K are historically unreliable when Bitcoin is poised for a breakout. He recommended watching for a breakout above $65,700 or monitoring reactions if prices retest the $60,000-$61,000 range.
Meanwhile, analyst Rekt Capital offered a more optimistic perspective, noting Bitcoin's potential return to its post-halving reaccumulation range. He emphasized the significance of this technical pattern, suggesting Bitcoin is aligning with historical post-halving price trends.
