Bitcoin (BTC), reversed in the classic fashion after bulls failed to hold higher levels on March 10.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Bart is back at the Bitcoin chart
TradingView and Cointelegraph Markets Pro data showed that BTC/USD formed a typical “Bart Simpson’ retracement pattern on Wednesday night.
Although the pair had crossed $42,000 before consolidating it, a lackluster support system meant that it fell back to its old trading zone of $40,000 which was a familiar result.
These “Bart” formations were common in the weeks before and highlighted the difficulties faced by markets that have remained firmly within a trading range for many months.
– Was no follow up in price or volume for deriv bidders – attempting to unwind their longs and tanked the market volume, predicted funding, and open interest tell the story pic.twitter.com/hJD6QVRUek
— Dylan LeClair (@DylanLeClair_) March 10, 2022
According to Coinglass data, those hoping for upside continuation were disappointed. Cross-crypto liquidations totaled $211 million in the 24 hours prior to writing.
Chart of crypto liquidations. Source: Coinglass
Crypto Ed, a popular trader, said that he had “fried bulls” this morning. He had previously called Wednesday’s highs the end of the upside and told his Twitter followers.
“This isn’t PA, but PP Pong” he said, referring to the up- and down-slopes of the “Bart”, which occur during Asian market hours.
Thursday will see the U.S. consumer price inf (CPI) data released for February. This is expected to show that inflation remains hot at 7.9% annually.
Matthew Hyland, trader and analyst, tweeted that the CPI number will be out tomorrow and that the FOMC meeting was in less than one week (March 15-16).
“I anticipate volatility ahead, but greater certainty as a consequence.”
The accompanying chart highlights key resistance levels that BTC/USD must overcome. It also shows support at $36,300, and $33,000.
BTC/USD chart, key levels highlighted Source: Matthew Hyland/Twitter
Copycat U-turns: ltcoins
Altcoins also suffered from Bitcoin’s volatility, with Ether (ETH), down 5.1% to less that $2,600.
Similar: Price analysis 3/9 – BTC, ETH and BNB, XRP. LUNA. SOL. ADA. AVAX. DOT. DOGE.
Other top ten cryptocurrencies ranked by market capital were also downbeat on the day. Terra (LUNA), a previous high-flyer, managed to linger at $100 highs.
LUNA/USD 1-hour candle charts (Binance). Source: TradingView