Bitcoin and XRP Price Rally Faces Downside Risk as Bearish ‘Bart Simpson’ Pattern Emerges

Bitcoin’s (BTC-USD) price could face a 20% price drop if a classic chart shape finishes forming, though higher trading activity may help soften the fall. Major crypto assets began losing momentum after rapid price gains. This has created a chart structure known as a Bart Simpson pattern. This pattern happens when a price shoots up fast, trades sideways in a flat line to make a spiky top, and then drops straight back down to wipe out the gains, making the chart look like Bart Simpson’s head.

The price pattern unfolded in three distinct phases starting August 19. Bitcoin spiked from $64,420 up to $78,300 before topping out under $80,700 on August 25. The asset then traded sideways in a narrow band before pulling back toward $76,500. Quantum Economics founder Mati Greenspan pointed out that a true completion requires a full 20% drop, though he expects deeper institutional market depth to prevent a complete breakdown.

New Market Trading CEO Warns of Downside Risks

New Market Trading Chief Executive Officer Frank Hepworth views the current price setup as a classic distribution pattern. Frank Hepworth noted that Bitcoin failed to clear resistance at its 50-week moving average near $81,000, calling that level the last line of defense for sellers. Since buyers failed to break higher, Frank Hepworth warned that Bitcoin could drop back toward $70,000 or even $58,000 if selling pressure accelerates.

This technical resistance prompted New Market Trading to reduce its overall market exposure. Frank Hepworth added that institutional selling into retail demand created the flattened top formation on the daily chart. Holding the $70,000 price level remains vital to keeping the broader uptrend intact.

XRP’s Could Face an Even Larger Drop

Altcoins like XRP (XRP-USD) face a much higher risk of a steep price crash. Quantum Economics founder Mati Greenspan noted that after the XRP token price shot up rapidly from $1 to $1.52, the chance of a large price drop back toward $1 became far more likely. XRP traded near $1.32 as prices began falling.

New Market Trading Chief Executive Officer Frank Hepworth warned that XRP appears particularly vulnerable due to its weakening performance against Bitcoin. With the XRP/BTC pair slipping below its 20-week moving average, Frank Hepworth expects XRP to underperform if market conditions deteriorate. If Bitcoin drops to $70,000, Frank Hepworth projects XRP could fall between $0.55 and $1.21, with a deeper market drop pulling tokens toward $0.46.