Crypto expert warns after bitcoin price surge: This could be a “Bart”
Apr 24, 2020
The price of the world’s biggest cryptocurrency, bitcoin, has been laying stable around $7,000 in recent weeks.
Thursday afternoon, however, the price of bitcoin went up. It didn’t go up enough for anyone to be talking about a rally, but it still reached a level it has not been at for 20 days.
An increase of over six percent
One bitcoin is currently trading for just over $7,541. Compared to yesterday, that is an increase of 6.11 percent, according to numbers from Coinmarketcap.
Bitcoin’s so-called halving, when the reward miners get for mining blocks on the bitcoin blockchain is reduced by 50 percent, is less than 20 days away.
Although some believe that the halving is already “priced in”, many people in the crypto world may wonder if yesterday’s increase in price could be the beginning of the bull market analyst has predicted could happen at the time of the halving.
One who does not think this is Totte Löfström, crypto expert and CEO of the Swedish crypto exchange Trijo.
“Many people interpret yesterday’s increase as the beginning of a new bull market, but even if such interpretations can become a self-fulfilling prophecy if enough people buy into it, I still doubt it,” he says.
Still fear in the crypto market
The question, however, is whether investors are generally prepared to jump on the bitcoin train right now.
The Fear and Greed Index is a measurement tool that, using a variety of parameters, shows where the bitcoin sentiment is. Right now, the index points to “extreme fear”, which shows that people are nervous about putting their money into bitcoin.
Totte Löfström believes that the bitcoin price may soon reverse as much as it just went up.
“When I look at the graph, I interpret that there were one or a few large buyers who pushed the price up a bit in the beginning and that more people then followed suit and pushed the price further up. I think there is a big risk that the price will make a so-called “Bart”. This means that the price goes down about as much as it went up, so that the graph looks like Bart Simpson’s head, the crypto expert tells Trijo News.
Barts Simpson’s head in an old bitcoin price diagram. Image source: The Crypto Dog