Is Bitcoin About to Flash Crash? What a 'Bart Simpson' Pattern Would Actually Take

Bitcoin traders are calling August's spike-and-fade a Bart Simpson hairline. Here's what separates an actual flash crash from an ordinary correction.

The top 3

  1. The 2011 Mt. Gox Flash Crash: In June 2011, Bitcoin experienced its largest percentage drop, plummeting by nearly 99% on the Mt. Gox exchange after a hacker compromised accounts and dumped stolen BTC, causing panic selling due to low market liquidity.
  2. March 2020 'Black Thursday' Crash: In March 2020, Bitcoin's price fell by approximately 50% in a single day, often referred to as 'Black Thursday,' amidst global market panic triggered by the COVID-19 pandemic.
  3. May 2021 China Crackdown Crash: In May 2021, Bitcoin's price dropped by 35-53% in a month, largely due to China's statement on curbing Bitcoin trading and mining, coupled with Elon Musk's environmental concerns about mining.

Sources

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