A look at the Bart Simpson Crypto Chart pattern and what it means
Of CNBCTV18.com IST (published)
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Barts, as they are often referred to, are award patterns that resemble cartoon character Bart Simpson’s unique hairstyle. But what causes a Beard, and what it means, find out here:
To most people, Bart Simpson is nothing more than a fictional character from one of the most iconic television shows in history – The Simpsons. However, the funny animated teenager found a place in the cryptoverse after an unmistakable chart pattern was named after him.
Barts, as they are often referred to, are award patterns that resemble the cartoon character’s unique hairstyle. But what causes a Beard, and what does it mean, let’s find out.
What is the Bart Chart Pattern?
Barts is characterized by a sharp increase in the price of an asset. After reaching the top, the price fluctuates in a tight range, causing vertical zigzags that resemble the cartoon character’s iconic hairstyle.
Finally, the price plunges back to its previous area from which the price first broke out, thus forming a Bart. This pattern can also happen in reverse, where a drop occurs first, followed by a tight consolidation and a spike to complete the move. This results in an inverted image of Bart’s head and is considered a bullish consolidation pattern.
These price movements are usually caused by large investors trying to burn crypto margin traders, both short and long. These entities place more buy orders, causing prices to rise. At the same time, shorts begin to close their positions to avoid losses, further driving the price of Bitcoin.
After a while, these units begin to flood the market with more sell orders, causing the price to plunge to its original range and wipe out any gains from the price increase. As such, the idea is to liquidate traders in both directions.
Usually these price movements are initiated by large investors known as whales. However, some individuals believe that Barts could be triggered by crypto exchanges themselves, which is quite possible thanks to their large holdings and the lack of regulations. That is one of the reasons why analysts often refer to the crypto market as a “whale playground”. These big investors can bring out dips and spikes whenever they want.
The Bart Simpson pattern debuted during the 2018 Bitcoin bear run when volume and liquidity began to decline due to waning interest in the asset class. A Bart also appeared in March this year. BTC shot up from $39,120 to $41,700 in 30 minutes on March 16, only to fall back to $39,000 within an hour.
How does Barts affect the market?
The Bart Simpson chart pattern is somewhat unique to cryptocurrencies, especially Bitcoin. This is thanks to low liquidity and high volatility in the asset class. Most investors and traders have heard of this pattern and many have been burned by it in the past. If Bitcoin experiences a Bart, it could also have a rub-off effect on altcoins. However, long-term investors usually have nothing to worry about, as such price movements do not cause much damage in the long run.
Conclusion
The Simpsons is known for predicting world events well before they happen, including Trump’s presidency, the pandemic, Russia’s war on Ukraine and more. Similarly, if you see the price of an asset rise sharply, followed by a tight period of consolidation, you know what could potentially follow.
