Josh: No dude, she looks like a bitch
Mike: Are you assuming that she's a bitch based solely on that fact that she is butch?
Josh:(laughs) Yes, yes i am
Mike: So is it safe to assume that all butch women are bitches
Josh: Yes, yes it is, they are "Butch Bitches"
It's more commonly used to describe lesbian relationships, where the couple feels the need to mimic this typical heterosexual dynamic.
Also there's the stereotypical lesbian relationship where a petite, attractive "femme" will date a woman in flannel and a mullet.