What Is Crypto's 'Bart' Chart Pattern and Does It Mean Bitcoin's Price Is Heading Towards a Rally?
1Squint at the latest price charts and you can see a popular cartoon character from The Simpsons—and portents of a brighter future for crypto.
I remember when I realized that Bitcoin had grown up. I can’t remember the date, but I do remember the moment when bitcoin started to trade like a normal security, like a stock or bond. I looked on with pride, much like watching a child taking their first steps—complete with the volatile ups and downs.
Daniel Kelly Kennedy, the director of communications at Mercurity Fintech Holdings, is a businessman, columnist and crypto enthusiast.
As a technical analyst my goal is to identify larger patterns, whether the subject is a security, a sector, an index, a country, a global trend or my armchair psychoanalysis of other people’s behavior. I do know a thing or two about micro technical analysis and I believe, as bitcoin trades in the most boring way imaginable (it's been "range bound" for weeks), that we’ve entered one of the most important and interesting times for the price action of the largest cryptocurrency.
The power of now.
Bitcoin is currently trading in what is referred to as the "Bart Simpson pattern," a reference to the famous cartoon character's spiky hair when bitcoin trades in certain way. This pattern is most often seen when looking at shorter time frames (and apparently at times of low liquidity; the term reportedly came into vogue during the 2018 bear market).
These price fluctuations are rarer outside of crypto—they appear when there is a sudden price movement, then period of trading close to a particular price (showing up as Bart's iconic zigzags on a price chart) and finish with a sharp price movement in the opposite direction. When Bart’s spiky hair is upright, i.e. when the schoolyard prankster is facing you, it is considered a bearish indicator and when inverted, like Bart doing a handstand, it is treated as a bullish indicator.
Most recently, with BTC is trading between $29,000 and $32,000, give or take a few hundred in either direction, Bart’s head is upright. The pattern began forming after a 20+% move on Wednesday June 14, 2023. At that time BTC was trading at $25,199.30 and on June 23, BTC hit the next level of resistance at $30,644.90. The price has since stalled and continued to consolidate in this tight range for more than a month.
To the moon.
Small pieces of news matter, but not as much as we think – put/call options expiring, the Federal Reserve’s decisions, Consumer Price Index and Gross Domestic Product figures, etc. While important in the short term, it’s a mistake to get too focused on these small data points and miss the larger picture: Bitcoin trades macro. On a long enough time line bitcoin seems to just keep climbing, which is why buy and hodl and dollar cost averaging remain the best strategies for trading BTC.
See also: Dollar Cost Averaging: Build Crypto Wealth on a Budget
Small pieces of information only move with the already established trading momentum, like how every drop in the ocean constitutes a wave. The truth is that the drops don’t move, they are pulled—regardless of the will of the individual drops. To look too closely at the minutiae of the daily news is like looking at the finger pointing to the moon. Do not concentrate on the finger or you will miss all the heavenly glory!
Fundamentals vs. the Fed vs. FUD.
It’s important to...
https://www.coindesk.com/consensus-magazine/2023/08/09/what-is-cryptos-bart-chart-pattern-and-does-it-mean-bitcoins-price-is-heading-towards-a-rally/
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