The Bitcoin Bart Simpson model discourse, which was used for the first time in September 2015, started to be accepted by crypto money lovers in the later period.. So, what does this term mean and what is it used to describe?
What is the Bitcoin Bart Simpson Model?
As you all will remember, Bart, the little mischievous kid from the house in the famous American cartoon series The Simpsons. The reason why Bitcoin and Bart Simpson are in the same sentence is that Bitcoin price movements draw a similar pattern to Bart’s head.
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As you can see in the chart above, while the Bitcoin Bart Simpson model is forming, Bitcoin suddenly rises at first.. After consolidating for a certain period of time, Bitcoin prices suddenly break down.. This pattern is more consistent on 1-hour and daily charts.
The chart below covers 20 days of BTC movements between August 20, 2019 and September 9, 2019.. As can be seen, a complete Bitcoin Bart Simpson model has formed in the marked part of this chart.. Well, what are the reasons behind the formation of this pattern?
What are the reasons for the formation of the pattern?
In 2017, Bitcoin reached its highest level in its history.. The collapse that started towards the end of the year, in which the Bitfinex exchange and Tether were at the center, could not be prevented.. Bart Simpson’s pattern began to repeat so many times in price movements that two theories were put forward to explain it.
One of them was the Wyckoff theory.. In the Wyckoff price cycle, Bitcoin prices are shaped by four basic movements: collecting, raising prices, distribution and lowering prices.. (A must for Bitcoin charts: Bart formation)
The other theory is based on manipulation. Bitfinex and Tether manipulate the market by predetermining the buying and selling prices of Bitcoin with the help of specially designed splash bots.. Because this pattern represents a specific pattern, many exchanges and investors can make a big profit by margin trading with Bitfinex. can be used to the advantage of the institution or an investor. Considering the fact that volatility is inherent in the cryptocurrency market, the Bitcoin Bart Simpson model can be a source of income for many investors.
Please see!: The 7 most used technical indicators in crypto money markets
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