Say Hello to “Bart” Simpson That Affects The Bitcoin!

By August 10, 20223 minute read
Say Hello to “Bart” Simpson That Affects The Bitcoin!

The crypto sector is rife with eccentric personalities, controversy, and memes. The “Bart” or “Bart Simpson” chart pattern is one such meme that periodically surfaces on Bitcoin price charts.

But what precisely is the Bart pattern, and why does it show up on Bitcoin and other crypto price charts so often? Let’s learn about this concept in this blog.

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Origin of the Bart pattern

Bart Simpson patterns first appeared in the 2018 Bitcoin bear market, when volume and liquidity started to decline owing to dwindling interest in the asset class. As the crypto prices fell again, the volume also diminished to its lowest levels in a year, proceeded in a low-liquidity, a low-volume trading environment that is ideal for Bart movements to reappear as a frequent trading strategy.

What is the Bart Pattern?

The name is inspired by ‘The Simpsons’ character Bart Simpson.

Bart typically shows up during slow trading sessions when there don’t seem to be any price changes. He awakens the Bitcoin market with a significant rise upward or downward, a significant purchasing or selling order.

After the spike, everything returns to normal, and the price stays at the new level for a while, generally a few days. Due to Bart’s character as a practical joker, the consolidation is just the quiet before the next, much more significant spike.

Bart will exit the stage with a motion downhill if the first movement is upward. If the spike turned out to be a dump, Bart would grab the money with an even greater pump.

Why specifically Bart? Because the chart pattern’s stated consolidation phase resembles the shape of Bart’s head.

Understanding Bart Pattern

Both crypto and non-crypto assets are susceptible to the Bart pattern. Because the asset’s price pattern resembles the form of Bart Simpson’s famous head, it is given the moniker “Barts.”

It is helpful to be able to see this pattern since it has a significant impact on short- and medium-term trading positions. It manifests as a result of several hundred Bitcoin orders placed in a couple of minutes, which may alter the coin’s price. While it may happen to any cryptocurrency, it primarily concerns Bitcoin for several reasons. One such factor is the significant volatility that Bitcoin experiences regularly, as well as the fact that sudden changes in BTC value may have an impact on the whole altcoin market.

These short pumps and dumps are caused by market manipulation, which will likely penalize short- and long-term cryptocurrency margin traders. Due to the absence of rules, it’s certainly feasible for the exchanges to do this. Still, it may also be the work of significant cryptocurrency traders known as “whales.”

The pattern can also occur in reverse, producing an upside-down picture of Bart’s head with the drop coming first and the spike following. A bullish consolidation pattern is what this is.

Understanding the effect of this pattern on the market is something new, and an experienced investor should not avoid it. Let’s have a quick overview of this.

Effect of Bart pattern on the market

  • Bitcoin ETF: These events, along with others, is probably a factor in the SEC’s continued opposition to approving Bitcoin ETFs. Contrary to what traders and investors may think, the crypto market is still small and susceptible to manipulation. Analysts say the crypto markets are sometimes the “whales’ playground” since they can fluctuate at any time.
  • Miner Affection: The miners continue to work, especially during a weak market in crypto like the one we had in 2018. They rely on rewards to cover their electricity bills and maintain their mining rigs because their objective is to make money by assisting with the upkeep of the Bitcoin blockchain. However, as the low prices of BTC sometimes fall short of covering their essential expenses, price manipulation may also have an impact on them.

To conclude this article, let’s look at some trading tips to survive the Bart pattern.

Conclusion: Trading tips for surviving Barts

  • The Barts will impact you less if you are going for the middle or long-term trading periods.
  • Short-term traders may wish to have additional stop loss orders or liquidation prices as they frequently initiate margin positions on well-known cryptocurrency exchanges.
  • Think about the possibility of a Bart swiftly taking the price in the other direction if you notice a big move that is then followed by consolidation.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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Harshita Shrivastava

Harshita Shrivastava

Harshita Shrivastava is an Associate Content Writer with WazirX. She did her graduation in E-Commerce and loved the concept of Digital Marketing. With knowledge of SEO and Content Writing, she knows how to win her content game!

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