Bitcoin has dropped back to its weekly low of $85,500 after experiencing the notorious “Bart Simpson pattern” earlier on Wednesday. This pattern is characterized by a rapid price surge, followed by a brief plateau, and then an equally swift decline back to the original level. The shape formed on the charts resembles the iconic hairstyle of the cartoon character Bart Simpson.
The cryptocurrency market once again finds itself in a frustrating position: it shows no correlation with rising stock markets but mirrors stock declines almost perfectly when markets fall.
This morning’s sharp Bitcoin rally collapsed alongside the Nasdaq index, which started to dip amid waning enthusiasm for artificial intelligence investments. About ninety minutes before market close, the tech-heavy Nasdaq was down 1.5%, dragged lower mainly by significant losses in semiconductor stocks.
Adding to crypto investors’ disappointment is the strong upward momentum seen in precious metals — silver surged another 5% hitting new highs while gold climbed 1%, nearing its all-time peak. There was a time when Bitcoin enthusiasts believed BTC would be favored during Federal Reserve easing or as a safe haven during stock market turmoil; however, currently gold, silver, and even copper are attracting that flight-to-safety demand instead.
The performance chart for this week paints a grim picture for cryptocurrencies: Bitcoin has fallen 8%, Ether dropped 15%, while Solana and XRP each declined about 12%.
Where Is The Support Level?
According to Jasper De Maere, desk strategist at Wintermute, Bitcoin is likely trapped within a range between $86,000 and $92,000. He noted that due to heightened volatility within this consolidation zone today’s abrupt price swings are not unusual as traders face liquidations.
De Maere advised caution against overinterpreting technical signals right now and anticipates further profit-taking over the next couple of weeks driven by year-end portfolio rebalancing and tax-related moves. “Investors are closing positions temporarily… short-lived rallies get sold off quickly,” he explained.
He expects sideways trading for Bitcoin will persist until new catalysts emerge—one potential trigger being large options expirations scheduled for late December.
While not declaring that we’ve hit bottom yet, De Maere observed early signs suggesting such conditions may be approaching: “I feel like we’re at maximum pain levels,” he said. “In the near term I’d say we’re definitely oversold.”