What does the return of the Bart Simpson pattern in December mean for Bitcoin?

Bitcoin price (BTC) once again fell below the $90,000 support level last weekend, as high volatility continued to dominate the market in December.

Many traders have noticed the frequent appearance of the “Bart Simpson” pattern on Bitcoin price charts. Notably, such a pattern seems to be forming at the moment, which could shape BTC price movements in the coming days.

Bart Simpson Pattern: Impact and Return in December

The Bart Simpson pattern is named after the famous cartoon character Bart Simpson, due to its distinctive shape resembling the character’s hairstyle. This pattern appears when Bitcoin’s price experiences sharp increases or decreases over a short period, then moves sideways for a while before returning to the original price range. Although the name is somewhat humorous, this pattern poses real challenges for investors amid volatile markets.

Many traders have observed the frequent occurrence of this pattern last month. An analyst shared a chart illustrating three Bart Simpson patterns appearing from December 10 to 12. Other observers pointed out five instances and more between late November and mid-December.

In this context, some experts suggest that Bitcoin may be completing another Bart Simpson pattern. If this assessment proves true, the market could see a new upward move. However, the sustainability of this rally remains a big question. One analyst commented that the common scenario is for prices to break and quickly reverse.

“The Bart pattern combined with weekend order books creates stop-loss hunts. My basic scenario is that both sides get wiped out before a clear trend emerges. Sunday and Monday are not prediction points but liquidity events,” Paweł Łaskarzewski shared.

Liquidity and Market Mechanics

Another expert emphasized that the Bart Simpson pattern is not new and has appeared multiple times in Bitcoin’s trading history. According to him, this pattern tends to occur under certain market conditions, especially when liquidity is low and large investor activity increases.

When prices fluctuate sharply, retail investors often follow the trend, while stop-loss levels become easier to identify. “Prices spike when liquidity is low, people start sharing targets, confidence returns… then prices plunge again and fully recover. Many still debate about ‘natural price discovery’ while the chart looks like it was drawn with a ruler. Whether you like it or not, Bart Simpson is always present,” an article noted.

Other experts believe that the repeated appearance of the Bart Simpson pattern often creates short-term volatility traps, causing quick reversals and removing short-term traders from positions as market momentum weakens.

“The Bart Simpson pattern mainly erodes the emotions of short-term traders, while long-term investors hardly pay attention to these fluctuations,” one market analyst commented.

Thus, as Bitcoin continues to operate in a reactionary trading environment, the constant appearance of the Bart Simpson pattern underscores the role of liquidity and market structure in short-term price behavior. While these patterns can generate strong moves and quick reversals, experts argue that their significance is usually limited to short-term positions, with larger trends still depending on liquidity and sustained market participation.

Mr. Giáo

BTC0.33%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)