There is a pattern so common in cryptocurrency trading that it has been nicknamed the “Bart” due to it looking the head and hair of an iconic character. For a better understanding, see this Tweet from @TheCryptoDog (I’m trying to keep this educational and informational and avoid any direct references to the character; this page is about the origination of a meme and the related chart pattern for educational purposes).
It is useful to know this pattern in crypto trading because it tends to end in a sizable price decrease following an equally sizable price increase. It is full of potential ways to lose money if you aren’t careful and it goes that way).
A Bart starts off with a sizable pump that forms a big green candle. (The big candle to the left in the image above for example; the one with the “eat my shorts” arrow pointing to it). This candle is often formed from forcing short short positions (AKA eating shorts; or, for those of us with short positions over, “eating my shorts.”) This triggers stop-buy orders and FOMO buying spurred on by big buys from big players. The first part often looks like the bullish chart formation the bull flag as it forms (which is deceptive).
