Crypto 101: What Are Barts And How They Affect Bitcoin?

It is very helpful to know how to recognize the Barts pattern, as it can significantly affect short and medium-term trading positions. This article will share the influence of this pattern on the market and a few tips to “survive” after this phenomenon.

What are Barts?

By looking on small frame Bitcoin’s chart, one can identify sudden movements or ‘bump’ in one direction, followed by consolidation and a sudden ‘bump’ to the other direction that ends close to the base price.

This phenomenon can also happen in non-crypto assets, and it has given the name “Barts” because the asset’s price pattern looks like the head’s shape of the iconic Simpsons character, Bart Simpson.

Source: The Crypto Dog

It is useful to know how to recognize Barts pattern, as it can significantly affect short and mid-term trading positions. It appears as a result of hundreds-of-Bitcoin orders in a matter of minutes, which can change the price of the coin. While it can happen to any cryptocurrency, it mostly revolves around Bitcoin for several reasons. One such cause is Bitcoin’s usual substantial volatility, as well as the fact that sharp changes in BTC value can affect the rest of the altcoins market as well.

The reason for these sudden pumps and dumps is likely to burn crypto margin traders, whether short or long, by manipulating the market. While some believe that this is done by the exchanges themselves – which is entirely possible due to the lack of regulations – this might be related to large crypto traders, commonly known as ‘whales.’

The pattern is also known to happen in reverse, resulting in an upside-down image of Bart’s head where the drop occurs first, and then the spike arrives. This is known as a bullish consolidation pattern.

The Bart Pattern’s Effects on the Market

Bitcoin ETF

These events, among others, likely contribute to the reasons why the SEC continually refuses to approve Bitcoin ETFs. Despite what investors and traders believe, the truth is that the crypto market is still thin, and too easily manipulated. Analysts often tend to view the crypto markets as the “whales’ playground”; they can bring forth drops and surges whenever they choose.

Miner Affection

Especially in a crypto bear market, as we have in 2018, the miners remain active. Since their goal is to profit by helping to maintain the BTC blockchain, they depend on rewards to pay their electricity costs and keep their mining rigs up to date. However, price manipulation can also affect them, as low prices of BTC tend not to be enough to cover their basic costs.

Trading Tips to Survive Barts

  • If you are aiming for the middle or long-term trading periods, the Barts will affect you less.
  • Short-term traders, who tend to open margin positions on exchanges such as Bitmex and Bitfinex, might want to have further stop loss orders or liquidation prices.
  • If you identify a sudden move followed by consolidation, bear in mind an option of a Bart that will drive the price quickly to the other direction.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

Coincu New

Victor

Recent Posts

Bybit Proof Of Reserve Shows Changes In BTC, ETH, And USDT

Bybit Proof of Reserve reveals BTC holdings at 50,412 (-8.55%), ETH at 525,641 (+8.11%), and…

8 minutes ago

Bitcoin Spot ETF Inflows Reach $449M With BlackRock Leading

Key Points: Bitcoin Spot ETF Inflows totaled $449M, led by BlackRock’s $1.45B contribution. Ethereum Spot…

57 minutes ago

Best New Meme Coins to Join for 2025: BTFD Coin Leads, Popcat Keeps It Purr-fect, and Non-Playable Coin Hits Gamers Hard

Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…

2 hours ago

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

3 hours ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

3 hours ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

3 hours ago

This website uses cookies.