Bart Simpson pattern feared for bitcoin and XRP as prices pull back

coindesk.com 53 m

Bitcoin

Crypto traders are invoking “Bart Simpson,” the spiky-haired cartoon boy from “The Simpsons,” after a long time.

The reason? Bitcoin $BTC$76,907.09, $XRP ($XRP), ether ETH$2,386.19 and many others are losing ground, reversing recent steep gains in a manner that closely resembles Bart’s spiked hairline, which shoots straight up before curving sharply back down. It's been at least three years since bitcoin’s Bart Simpson Pattern, first coined in 2015 by former X user @whaleclubco when $BTC traded at $229, was last mentioned.

Spotters flagged the formation on Sept. 1, re-igniting chatter across crypto X. Ben Cowen, a market analyst and founder of Into the Cryptoverse, suggested to his 1.2 million followers on X that the pattern was forming.

The pattern has three phases. First is the Spike, a sudden, aggressive price jump or drop that happens quickly enough to trick everyday buyers into chasing the momentum. Next is the Flat Range, or the head, when the price moves sideways in a tight band as trading volume typically drops off. Last is the Snap Back, a sharp reversal in the opposite direction of the original Spike. Put the three together, and just like that, Bart Simpson appears on the price chart.

The Spike began on Aug. 19, when $BTC was trading around $64,420. By Aug. 21, the price of bitcoin had risen by nearly $14,000 to roughly $78,300, eventually hitting a wall at just under $80,700 on Aug. 25. At the time of writing, the price of bitcoin hovered around the $76,500 level, according to CoinDesk data.

The same price action, when viewed on a chart, looks unmistakably like Bart Simpson taking shape, with the final snap back unfolding.

Bitcoin chart flashing potential Bart Simpson Pattern. (CoinDesk)

Reactions on X are mixed. Many traders doubt the pattern will complete, expecting bitcoin to maintain its upward trajectory, while others view a potential pullback as a buying opportunity ahead of the next bull run.

If Bart Simpson shows his face, bitcoin's price would pull back by at least 20%, said Mati Greenspan, founder of Quantum Economics and former eToro senior analyst. However, Greenspan added he doubts it will happen.