Bart Simpson & Wedge Pattern
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The crypto sector is full of different technical patterns and is named based on their structural appearance. One such trading pattern has emerged, called the Bart Simpson. The Bart Simpson pattern happens when a lateral movement follows an unforeseen increase or decrease in prices, and consequently by a sudden decrease or increase in prices. This occurrence makes the chart pattern takes on the shape of Bart Simpson’s head.
As a trader, it is beneficial to know how to identify the Bart Simpson pattern, as it can significantly impact short and mid-term trading positions. Bart Simpson pattern transpires when there are hundreds of orders in a matter of minutes, this can change the price of a crypto coin dramatically. The Bart Simpson pattern is also can occur in reverse, causing an inverted image of Bart’s head where the drop occurred. This occurrence is known as a bullish consolidation pattern. Bart Simpson can happen in any crypto asset, but it mostly revolves around BTC for many reasons. One reason is BTC’s significant volatility, as this plays a massive part in sharp changes in BTC value as well as the rest of the altcoins market.
What causes a Bart Simpson Pattern?
Most crypto traders can agree that the Bart Simpson pattern is a direct outcome of an absence of liquidity in the BTC market. Let’s go back in time, end of 2017, when new money was dispensed into the crypto market, whales liquidated their positions, this caused the prices of all crypto coins to crash big time causing a sharp decrease in price. Whales would come in and pump the market temporarily which would cause the lateral movement before the price drops again, if you look at a chart visually, you’ll notice that the pattern fits Bart Simpson shape. Trade analysts usually manage to observe the crypto markets as the for whales as their playground since they can bring increases and decreases whenever they choose.
Wedge patterns are common trends when it comes to the crypto market and is generally reflected as a multiple price wave reversal patterns. There two kinds of wedge patterns, rising and falling wedges. The rising wedge is when price swings go through highs and lows and is a pattern that proclaims a bullish trend that will reverse into a strong bearish trend. The falling wedge pattern resembles a mirror-like image of the rising wedge; however, it is this pattern that tells the trader that a bull-run is on the horizon. Most crypto traders postpone their entry/exit once they confirm the breakout as the bullish surge after the falling wedge can be significant.
The crypto market will always have its unforeseen market conditions. Classifying the trends can be hard work for crypto traders, but patterns like the Bart Simpson and Wedges can help point crypto traders toward a better trade outcome.
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