Bart Simpson should be well known for most of the people who read this. But what does he have to do with the Bitcoin price? Actually, he sometimes appears in technical analysis of Bitcoin prices: The Bart Simpson Pattern
The Bart Pattern comes as the latest in a long series of crypto trading-related memes. While the phenomenon is humorous in nature, the underlying implications of Bart are not so joyous. The pattern seems to be unique to cryptocurrency, and certainly does not represent what appears to be natural price movement.
What is the Bart Simpson Pattern?
The Bart Simpson Pattern describes a phenomenon in which the Bitcoin price pattern is similar to the typical head shape of the rebellious Simpson character. This occurs when the Bitcoin price rises sharply for a short period of time, then zigzags to the side, and shortly afterwards sinks again just as quickly.
Analysts sometimes blame whales for the pattern. Large Bitcoin owners can trigger such patterns by buying a lot of BTCs in a short period of time (price soars) and then selling them again on the high side (price plummets). After that, the Bitcoin price is more or less at the same level before.
Of course, this is not the only explanation for the Bart Pattern. Another, perhaps more plausible explanation involves the role of leveraged crypto positions. As more and more traders seem to be placing both leveraged long and short positions on Bitcoin and other leading altcoins, each sizable price movement – both upward and downward – could be sparking a squeeze wherein a number of margin traders are liquidated, thus magnifying the initial movement.
The Simpsons and Satoshi Nakamoto
In an episode that was shown at the time, Jim Parson, better known to viewers from The Big Bang Theory as Sheldon Cooper, explained how crypto currencies and block chain technology work. In addition, the makers hinted that they knew who was behind the pseudonym of Bitcoin inventor Satoshi Nakamoto. However, they have not betrayed it so far.