Bitcoin, XRP Flash Bearish 'Bart Simpson' Pattern: What Does It Mean?

Bitcoin (CRYPTO: BTC) and XRP (CRYPTO: XRP) are flashing a bearish “Bart Simpson pattern” as analysts warn the sharp August rally could fully reverse if key levels fail to hold.

How the Bart Simpson Pattern Forms

According to CoinDesk, the Bart Simpson pattern has three phases. First comes a sudden sharp price spike that tricks buyers into chasing momentum. 

Then price moves sideways in a tight range as volume drops off. Finally, price snaps back sharply in the opposite direction of the original spike. 

Put together on a chart, the shape looks unmistakably like Bart’s spiked hairline.

The pattern first appeared in crypto in 2015 when Bitcoin traded at $229 and has not been widely discussed in at least three years. 

Analyst Benjamin Cowen flagged the formation in his X post on Sep. 1, reigniting the conversation.

Bitcoin and XRP Enter the Pullback Phase

For Bitcoin, the spike began August 19 at $64,420 and ran to nearly $80,700 by Aug. 25 before stalling. 

Bitcoin now trades around $76,500, with the flat range phase giving way to what looks like the beginning of a snap back.

For XRP, the spike began the same day, climbing from $1 to $1.52 by Aug. 22. XRP has since drifted lower to around $1.32, tracing a similar shape on the chart.