Bitcoin ‘Bart Simpson’ returns as BTC price dives 7% in hours

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Bitcoin (BTC) strongly recommended for its trading range with a sharp selloff following a fresh move on June 7.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“Some of the best chops we’ve seen”

Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD last encountered resistance on June 1.

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The pair posted a daily gain of over 6%, but the $32,000 outlook changed the mood and bitcoin pulled back around $2,500 in a matter of hours.

A classic “Bart Simpson” structure is thus formed on the hourly time frame as frustrated traders do not challenge the current pattern.

“Standard price action again on bitcoin that has swept all the lows,” Cointelegraph contributor Michael van de Pope wrote In a Twitter update.

“If we hold around $29K, that’s probably reason enough to move a little bit. (and the $29K area is still the CME gap zone).”
CME Bitcoin Futures 4-hour candle chart with blank space highlighted. Source: TradingView

In addition to the CME Futures gap providing potential targets at levels seen prior to profit, the On-Chain Analytics Resource Materials indicator noted significant buying already at those levels.

Should this not happen, the target is focused on the next $28,000 area.

“I will just look for small opportunities in this range”, fellow trading account Crypto Tony ContinuousContinuing pointing to an overall decline.

“Either we lose the short range and will short a retest, or if we retest the EQ of the range and reject I will look for short positions. Until one of these triggers comes out Flatten until then.”

not a market participant at all Surprised Filbfilb was the co-founder of the trading platform Decentrader.

“Some of the best chops we’ve seen tbh, high quality stuff,” he joked.

“I would say it’s always the same, people are desperate not to miss the ‘bottom’, but it’s especially funny how it quickly reverses. The tradespeople are completely wasted. “

Long traders battling volatility saw 24-hour liquidations totaling $60 million for BTC and $158 million on altcoins, data from analytics platform Coinglass confirmed.

Crypto Liquidation Chart. Source: Coinglass

stock correlation blur

Thus the bitcoin altcoins underperformed severely in comparison to the stocks in the United States.

RELATED: BTC Price Breaks Longest Losing Streak in History – 5 Things to Know in Bitcoin This Week

The S&P 500 and the Nasdaq Composite Index both ended their June 6 trading session above open, putting their relationship with crypto into question.

Yasin Elmandjara, a crypto asset analyst at ARK Invest, nonetheless noted that bitcoin’s overall correlation with the S&P had hit new record highs on a rolling 30-day basis.

Further discussing BTC price action, he argues that the “dominant” trendline on BTC/USD remains intact, even despite the May drop to $23,800. As Cointelegraph reported, it was still ripe for a retest in the eyes of many.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.