Who isn't a fan of the famous "The Simpsons"?
However, the famous Bart is not very appreciated in the crypto world, let's understand why:
The Bart Simpson pattern is a term used to describe an illusion that has become popular in the crypto market. The illusion shows the head of the character Bart Simpson, from the animated series "The Simpsons," in an apparently impossible position. Although the illusion is simple in its execution, it is impressive in its effectiveness and has the ability to deceive the eyes of observers.
How it is formed?
This pattern is formed by a steep rise followed by a sideways movement that gives the sensation of being the Bart`s hair, followed by a fall that returns much of the initial rise, this forming the famous Bart Simpson .
The Bart Simpson pattern is often used by traders to identify a price trend in an asset, where the price initially moves in one direction before reversing and moving in the opposite direction with considerable force. The pattern is seen as an indication that the market is indecisive and may be about to change direction.
How to choose the targets?
As an entry trigger, the breakout or pullback of the sideways structure should be used, and as a take profit target, personally I like to use the 0.786 Fibonacci region.
Bart and Bitcoin...
Recently, many traders were looking for this pattern in reverse in Bitcoin, after the steep drop on March 3rd and sideways movement for a few days, it would be a "probable" scenario. However, since the breakout was a continuation, the invertded Bart Simpson in this case was not validated.
However Bart simpson appeared but not in the expected way!
As with any technical analysis, it is important to use the pattern in confluence with other technical indicators.
I don't like to call it a pattern because this is 70%"created by imagination" and 30% by technical fundamentals, so it requires a lot of attention when using and always consider that this pattern is 95% speculation!!
