Bitcoin, Crypto currency, Blockchain

Why is it so strong fluctuations in the price and what is the Pattern of a Beard?

The crypto market is developing steadily. Whether it is HODL or bear whale, the crypto-Community has all the fun of the scene is not lost expressions. The latest example of this Pattern is the famous Beard. It is such a weird Pattern (pattern) in a Course, that it can only be in a crazy market, such as the crypto-market.

What is the Pattern of a Beard?

Bart Simpson is one of the main characters from the animated series “The Simpsons“. The Beard Pattern is so named because it resembles the shape of Bart Simpson’s unusually shaped head and its flared hair. The Pattern occurs after an unexpected rate increase, you can see a big green or red candle in the chart image. In the following Tweet you can see a Beard Pattern.

After this great candle many small Upward and downward movements in the chart image, a Similarity to the hair of Bart Simpson. At the end of the Beard Pattern, a large candle, but in the opposing direction of the first candle. This candle is revised, in most cases, the complete previous price movement.

How is the Beard Pattern?

The Beard Pattern is usually triggered by Whales (large investors). After the Beard-Pattern a Redistribution or accumulation phase, follows most of the time.

In view of the fact, as the crypto-market has developed has also increased the number of investors, of such a Beard-Patterns of influence. The Beard Pattern is very efficient, if you want to make Trades, which only run for a short period of time. Such a pattern can only arise because it have people out there the tons of different crypto-currencies (Whales) that you can use to manipulate the classes as desired. Largely, these Whales manipulate the Bitcoin price, which could be due to the fact that movements in the price of Bitcoins affects currencies most of the other Crypto. But often manipulated the prices of other Coins or tokens.

If the Supply of a Cryptocurrency increases, the rate. This Supply will be reduced, however, if the demand increases, what will logically lead to a price increase. Since 90% of all Bitcoins are in circulation, there could be increases in the coming years, further large price.

A Beard pattern can vary in duration, strength and frequency. Usually a Beard-Pattern over several hours. As you can see from the photo above, there is a period of about 15 hours in which the price is relatively stable, until a massive eruption, followed by either up or down.

What do Algorithms have to do with it?

There is Momentum Spark Algorithms, which work by generating a minimal increase in the traders and other Algorithms to make new Trades. The traders set their Buy Orders on certain price level, which are then triggered by the Beard Pattern. Your Stop Loss is placed close to the purchase level, to suffer in the event of an unexpected price drop is no big loss. The algorithm is also successful, he must bring to the course in the zones of the Buy Orders of the Trader, so that there is then an increase by the increase in purchases.

In the case of the Bitcoin market, there are two different groups of people, which can carry out such a price manipulation. Firstly, there are the commercial investors, the large sums of money to buy crypto-Assets for such Manipulation, or is it the private investors (“Retail investors“), for example, through early recognition of the potential of the crypto market, an extremely large number of Bitcoins. Both groups of investors have the monetary means to have a Beard Pattern, either up or down, to trigger

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