Weeks before the halving on May 11, a majority of crypto and mainstream media platforms speculated on the pre-halving and post-halving price of bitcoin and what it meant for investors and the crypto market at large. While this was ongoing, the price of bitcoin soared to the $10,000 mark in what at the time signaled the beginning of an impending bull market. However, a few days before the halving, a series of events led to a bitcoin flash crash that left some traders at the receiving end of the famed volatility of crypto assets.
Subsequently, pundits have blamed bitcoin’s pre-halving dump on the actions of one or more whales. This theory claims that whales, who have significant bitcoin holdings, had capitalized on the speculative nature and immaturity of the crypto market to invoke a “Bart” pattern and profit from the surge in halving FOMO. Some experts theorized that whales had one way or the other fueled the impressive recovery of bitcoin following March’s price slump and moved to short it after it reached the $10,000 mark. Others opined that whales decided to sell their bitcoin once they realized that the digital asset could not break beyond the $10,500 price resistance level.
What Is A Bart Pattern?
Regardless of the variations in prevailing narratives, one thing that remains constant is that bitcoin had experienced a Bart pattern, which connotes a possible attempt to manipulate the crypto asset’s price. This price pattern, named after Bart Simpson’s peculiar head shape, is characterized by a sudden uptrend, followed by sideways movement, and finally, a sudden drop. Although this pattern is not native to the cryptocurrency, there are, however, reasons to believe that it has become a common element of today’s crypto market. This price pattern became prevalent at the end of the bull run of 2017.
The lack of liquidity in 2018 spurred whales to induce market trends that ended with them coming out on top. The same is true of the pre-halving dump. A report claims that whales began to bet against bitcoin while most margin traders were going long. At the end of the onslaught, $200 million worth of long contracts had gone up in smokes. While this development would have adversely impacted traders with short-term trading strategies, it is not as devastating to long-term investors.
How To Avoid The Impacts Of Bart Patterns
One of the few ways crypto participants can evade Bart patterns is to accumulate coins and hodl until market conditions become favorable. In line with this food for thought, crypto proponents are constantly searching for platforms or programs where they can legally earn cryptocurrencies. As such, it comes as no surprise that platforms like AlphaPlay are coming to the fore. At AlphayPlay, users have access to a p2p crypto gaming infrastructure where they can bet on the real-time prices of crypto assets. The assets available for betting include Bitcoin, Ether, Tron, and EOS. Users can try to play without registration using 1000$ demo money.
Additionally, the platform has introduced a way to earn crypto through its Alpha Gambling Loyalty Program tied to the crowdsale of the Alpha ERC20 token. The token sale started on April 26 and will end on the 8th of August. Token holders are receiving 6% of the platform’s revenue as bonuses. Likewise, members are inviting new users and earning 4% of the turnover on the referrals’ gaming activities. Lastly, they are winning up to 90% of the platform’s turnover as prizes.
Another viable escape from Bart patterns entails traders to learn how to identify and respond to potential price manipulations. To do this, traders ought to realize that not all bull flags are what they seem. Experts advise that traders need to ascertain the entities driving a new and sudden spike in prices, especially when demand for short contracts precedes the emergence of a huge buy order. In such cases, whales liquidate short margins and subsequently dump their coins at the peak of a buying spree.
Other Bart Pattern Theories
In some quarters, the Bart pattern is associated with Wall Street’s ploy to profit from the inexperience of new crypto traders. This notion describes how Wall Street, with the help of bots and algorithms, has enabled a continuous price manipulation cycle in the crypto market. Also, some believe that these recurring themes are somehow connected to crypto exchanges. According to a report, all a crypto exchange needs to do is take advantage of the lack of regulations and create false orders to fool traders into believing that there is a strong demand for bitcoin.
“These exchanges paint the tape to create the appearance of substantial trading activity and use different market manipulation techniques against their customers. One such technique is spoofing or phantom bids. The exchange places a buy order only to cancel it second/minutes later, or just before a trader wants to actually fill the order and sell his bitcoins. As soon as the order is placed, the price jumps, giving a false sense there is actually strong demand for Bitcoin,” the report reads.
Irrespective of the many theories explaining these events, the fact remains that the crypto market is far from being resistant to manipulations. Consequently, this has crippled the chances of a bitcoin ETF and caused regulators and institutional investors to have a rethink of their stance on crypto assets.