🚨Bart Simpson Alert: A Crypto Pattern That Signals Caution for BTC and ADA🚨
The 6-hour charts across major cryptos are flashing a dangerous formation known as the Bart Simpson pattern - that initial surge followed by a flatlining price channel is textbook distribution. Here's what smart traders need to know:
For Bitcoin, the setup is clear - after failing to hold above the 95 level, we're now range-bound in a tightening wedge. The anatomy reveals everything:
1) A sharp upward spike (Bart's "head")
2) A slow bleed forming the "flat top"
3) Volume drying up as price compresses
ADA mirrors this with even more precision - rejected at $0.71, it's now tracing that same ominous flatline. These patterns typically resolve downward when they appear after extended rallies.
The professional playbook for this scenario:
- Place limit buys at tested support levels ($85K BTC, $0.63 ADA)
- Only allocate 6-7% of planned position size initially
- Reserve 3-4% for potential averaging if we break lower
- Keep leverage modest (3x max) to survive volatility
Remember why this works - the Bart pattern traps impatient traders. Those who chased the initial spike are now underwater, while your limit orders wait to capitalize on their liquidations. The market rewards those who trade the chart, not the hype.
P.S. When the chart forms Bart's head, smart money starts preparing for the drop. Will you be the catcher or the caught?