The crypto market is seeing the return of a familiar chart formation, with traders pointing to a potential “Bart Simpson” pattern as bitcoin, XRP and ether retreat from recent highs.

The pattern takes its name from Bart Simpson’s distinctive spiky hair. In market terms, it describes a sharp price move followed by a period of sideways consolidation and an abrupt reversal, creating a shape that can resemble the cartoon character.

Bitcoin (BTC), XRP and ether (ETH) are among the major cryptocurrencies that have surrendered part of their recent gains. The term was first applied to bitcoin’s price action in 2015 by former X user @whaleclubco, when BTC was trading at $229. The formation has not been a major feature of bitcoin discussions for at least three years, but traders revived the comparison on Sept. 1.

The renewed chatter spread across crypto X, with Ben Cowen, founder of Into the Cryptoverse and a market analyst, telling his 1.2 million followers that bitcoin appeared to be developing the setup.

A Bart Simpson pattern typically develops through three stages. The first, the Spike, is a sudden and aggressive move higher or lower that can encourage traders to follow the momentum. The next phase is the Flat Range, or “head,” in which the price consolidates within a relatively narrow range while volume often declines. The final stage is the Snap Back, when the market sharply reverses its initial direction.

Bitcoin’s potential formation began Aug. 19, when BTC traded near $64,420. By Aug. 21, the cryptocurrency had added almost $14,000, reaching approximately $78,300. The rally continued until bitcoin encountered resistance just below $80,700 on Aug. 25. CoinDesk data showed BTC near $76,500 at the time of writing.

That sequence of moves has produced a chart structure that increasingly resembles Bart Simpson, with the latest decline potentially representing the Snap Back phase.

Not everyone expects the formation to be completed. Traders on X remain divided, with some arguing that bitcoin’s broader uptrend remains intact and others viewing a potential correction as a chance to accumulate before another rally.

Mati Greenspan, founder of Quantum Economics and a former senior analyst at eToro, said bitcoin would need to lose at least 20% for the setup to qualify as a true Bart Simpson pattern. He also said he considers such a move unlikely.

Greenspan noted that the formation was particularly associated with bitcoin’s earlier, less mature market structure. In his view, the combination of deeper liquidity, greater market depth and increased institutional participation has made clean examples considerably less common.

He said he could not remember seeing a clear Bart Simpson formation in years, although the pattern has not disappeared completely.

XRP, however, may offer a more obvious example, according to Greenspan.

The token’s near-vertical rally from roughly $1 to $1.70 has created a structure that could fit the pattern. Greenspan said a sharp retracement toward the level where the rally began would reinforce the comparison.

For XRP, the Spike started on the same day as bitcoin’s, Aug. 19. XRP climbed from around $1 to $1.52 by Aug. 22 and then moved into the Flat Range phase. The consolidation has gradually tilted lower, leaving XRP around $1.32 at the time of writing.

Frank Hepworth, CEO and founder of New Market Trading, sees the formation as a more direct warning to investors. He described the Bart Simpson structure as a classic distribution pattern, in which large holders sell while retail traders continue providing buying demand.

Hepworth said bitcoin’s “Bart’s hair” took shape as BTC repeatedly failed to break through its 50-week moving average near $81,000. He considers that level the “last line in the sand” for bears.

Failure to clear the resistance could leave bitcoin vulnerable to a move toward $70,000, Hepworth said. A stronger wave of selling could push BTC toward $58,000, leading his firm to cut its exposure.

Hepworth is also cautious on XRP, pointing to the token’s weakening performance relative to bitcoin.

The XRP/BTC pair has fallen below its 20-week moving average, which he expects could leave XRP more exposed if the broader crypto market corrects. If bitcoin retreats toward $70,000, Hepworth estimates XRP could decline to between $0.55 and $1.21.

If BTC instead falls toward $58,000, XRP could drop as low as $0.46, according to Hepworth.