Bitcoin Drops to $85,500 After Volatile “Bart Simpson” Price Thrill

Bitcoin struggles near $85,500 amid high volatility as precious metals rally and market correlations shift

  • Bitcoin returned to a weekly low near $85,500 after displaying a “Bart Simpson pattern” price movement.
  • The cryptocurrency market shows weak correlation with stocks during rallies but strong correlation when stocks decline.
  • Precious metals like silver and Gold continue to surge, challenging bitcoin’s role as a safe-haven asset.
  • Bitcoin and other major cryptocurrencies declined significantly over the past week.
  • Market volatility is high, with expectations of ongoing consolidation and profit-taking before year-end.

Bitcoin dropped back to about $85,500, reaching its lowest level of the week after earlier experiencing a “Bart Simpson pattern” on Wednesday, where the price swiftly rose, flattened, then sharply fell back, resembling the cartoon character’s head shape as described in a Binance.com/en/square/post/6946017733018″>market report.

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The cryptocurrency market again shows an unsteady relationship with stock movements, remaining uncorrelated when stocks rise but closely mirroring stock declines. Earlier in the day, bitcoin’s brief rally faltered alongside the Nasdaq, which dropped 1.5% amid fading enthusiasm for the Artificial Intelligence sector. The semiconductor sector led steeper losses.

Meanwhile, precious metals advanced sharply; silver surged 5% to a record high, and gold rose 1%, nearing its all-time peak. Historically, bitcoin was considered a preferred alternative to safe haven assets such as gold and silver during times of monetary easing or stock market troubles, but the rising metals prices suggest otherwise.

Among cryptocurrencies, weekly losses were pronounced: bitcoin fell 8%, ether declined 15%, solana lost 12%, and XRP dropped 12%.

Jasper De Maere, desk strategist at Wintermute, indicated that bitcoin is likely to continue trading between $86,000 and $92,000. Given the current high volatility, sudden price swings are normal, often caused by trader liquidations. He advised caution in relying on technical indicators and noted that profit-taking related to year-end portfolio adjustments and tax considerations is driving recent price declines. De Maere explained, “People are winding down positions to take a breather … short-lived rallies are being sold into quickly.”

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He expects bitcoin’s horizontal movement to persist until new catalysts emerge, potentially including major options expirations in late December. While not identifying a market bottom yet, De Maere commented, “I feel like we’re at max pain … In the short term, I would say we’re definitely oversold.”

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