Bitcoin (BTC) has given some of its gains from the sharp August rally, and the retreat is now tracing a familiar outline on the chart.

Analysts have flagged a Bart Simpson pattern forming on BTC. The formation has drawn concern that the decline still has room to extend.

The Bart Simpson Pattern Is Forming on Bitcoin, Here’s What It Means

Bitcoin gained 25% in August and pushed through $80,000 late in the month. The asset traded near $77,281 on Wednesday, down 1.42% over 24 hours.

Several analysts flagged the shape on the 4-hour chart. The pattern takes its name from the cartoon character because it resembles his hair. 

Price moves sharply in one direction, trades sideways in a narrow range, then snaps back toward the earlier level.

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The setup becomes particularly important if Bitcoin loses the $75,800 level, which another analyst identified as a key threshold. A break below it could confirm the bearish pattern.

On the other hand, holding above $75,800 could invalidate the bearish setup and give buyers room to regain momentum. In that case, Bitcoin could turn higher and retest the May high near $83,000.

Still, the Bart Simpson pattern should not be treated as a definitive bearish signal. The formation can emerge during normal consolidation after a sharp price move and does not necessarily lead to another leg lower.

Spot Demand Contracts as Long-Term Holders Sell

The flow data carries more weight than the pattern. Analyst CW8900 said spot demand has turned negative during the sideways move.

Negative readings appeared on two consecutive days. In contrast, futures demand stayed solid across the same stretch.

“Without the support of spot demand, there is no bullish rally,” the analyst said.

Meanwhile, analyst Axel Adler Jr reported that long-term holder distribution rose 61.5% between August 18 and August 28. The 30-day sum climbed from 174,500 BTC to 281,900 BTC.

That marked the highest reading since the start of 2026. Adler said the rebound after the short squeeze opened a window for profit-taking.

He added that inflation and labor figures due over the next few days will shape the Fed’s September decision. Whether current demand can absorb that growing supply now decides where Bitcoin price action heads next.

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Source: BeInCrypto