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Bart Simpson Pattern Returns: How Bitcoin Handles Volatility Pressure
The week ended with Bitcoin facing turbulence. The price retreated behind the US$ 90,000 barrier, while reduced market liquidity created the perfect conditions for the resurgence of a well-known technical pattern: the Bart Simpson.
What is the Bart Simpson Pattern and How Does It Work
This pattern earned its intriguing name due to its visual resemblance to the hairstyle of the cartoon character. In practice, it describes a specific sequence of movements: after a sharp peak or drop, the price stabilizes within a sideways range before quickly returning to the starting point. It’s as if the chart makes a well-defined zigzag.
The pattern repeatedly appeared between the end of November and mid-December, signaling recurring cycles of pressure and adjustment. Experts point out that this behavior is not random – it is closely linked to the levels of liquidity available in the market and the concentration of positions among large operators.
Reduced Liquidity: The Trigger for Sharp Movements
When market participation drops and liquidity becomes scarce, larger traders gain disproportionate power. Their operations can provoke violent price oscillations over short periods. These rapid reversals mainly affect short-term traders, who are often caught off guard by unexpected volatility.
On the other hand, those adopting a long-term strategy are less impacted directly, as their investment horizons are not sensitive to intraday movements.
Bitcoin Continues Navigating Uncertainty
With Bitcoin trading around US$ 91.96K, the market remains in a cautious state. The fragile market structure – characterized by irregular sustained liquidity – continues to be the main factor behind these oscillations. While the Bart Simpson pattern can generate volatility spikes and cause significant short-term impacts, its consequences for long-term trends remain limited.
The real question now is whether liquidity will return to normal levels or if we will continue to see these repetitive cycles. Until then, both traders and investors should stay vigilant to the market’s dynamic structure.