The BART Pattern, the MEME, the market-maker, the legend!
The following article will try to explain one of the recent MEME chart patterns – The Bart Pattern.
Since its creation, the crypto market is widely known as the Internet currency of the future. Made by the Internet and for the Internet, the crypto mania gave birth to many hilarious MEMES – from the HODL and the BearWhale to the Bogdanoff. The Bear Market, which started at the beginning of 2018 generated the most recent MEME named to the famous Bart Simpson.
Bart Simpson is a fictional character from the iconic animated television series The Simpsons and has a rather unique haircut. The Bart Pattern is named to this character because it resembles exactly his unique head and hair. Typically the Bart Pattern appears with an unusual rise in price, characterized by the formation of a massive green candle. This unusual candle is followed by some horizontal movement with up and down spikes, which are very much the same as the hair of Bart. At the end of the pattern comes the final candle, which is equal in size to the first green candle, but it’s a red one and represents a fast-moving DUMP. This dump invalidates the whole initial movement to the upside…
For the past couple of months, Bitcoin price in USD was very much trending on Bart Patterns. For many crypto investors, this was a clear sign of market manipulations by Whales, who are moving the BTC prices in order to correspond with their BTC Futures on CME and CBOE. The initial green candle was nicknamed “Eat my shorts!”, which is not only a famous Bart Simpson’s catchphrases but a way to express how the short positions within the two margin trading exchanges (Bitfinex and Bitmex) are instantly liquidated. The Whales usually push the price up in order to squeeze the short positions, triggering many buy-on-stop orders and creating an avalanche of FOMO buying. This first part looks like a deceptive bullish formation and many new traders are confusing it with a “bull flag”. Typically, the RSI explodes to the upper overbought area, surging the price into a consolidation period with little spikes to the up and down, following the Bart hair. In the end, the whales start taking profits by closing their long positions and forcing the price back to its initial level.
Sometimes an inverse Bart Pattern may form when all this all happens from the bottom up – when the first candle is a massive drop liquidating longs, then the consolidation phase followed by the increase equal to the drop.
Although hilarious this Bart Pattern is a bad sign for the overall crypto market. These heavy price manipulations result in ordinary investors and traders lose a lot of their funds, while the big players on the market take profits. A lot of people left the crypto market since the introduction of the futures up until now. On top of that, institutional investors are carefully following these price movements and until we get rid of them, I doubt they will enter the market.
Don’t forget we all started from the bottom…