As a famous chart pattern approaches completion, Bitcoin, the largest cryptocurrency by market capitalization, may be preparing for a significant move in the near future.
On the four-hour chart of Bitcoin, cryptocurrency expert “Carl from the Moon” on Twitter has detected an inverse Head and Shoulders Pattern that, if confirmed, might lead to an upward surge.
A bearish-to-bullish trend reversal is said to be indicated by the inverse Head and Shoulders Pattern, which may also portend the conclusion of a downward trend.
This pattern emerges when the price descends to lows before rising; the price then rises once more, falls below the previous low, and then rises once more before falling again but not as far as the lows experienced in the prior instance. After a bottom low has been formed, the price climbs towards the resistance located close to the top of the prior lows.
Tuesday saw Bitcoin struggle to hold onto a short increase above $27,000 as the benefits of BlackRock Inc.’s application to form a U.S. exchange-traded fund trading in the cryptocurrency began to wane. BlackRock applied for a spot Bitcoin ETF on June 15 with the Securities and Exchange Commission.
The largest digital asset at one point reached intraday highs of $27,173, but then reduced the gain to trade at $26,830 as of the time of publication.
Volatility remains at multi-year lows
According to on-chain analytics startup Glassnode, volatility, volume, and realised prices are still at multi-year lows, indicating that investor antipathy towards Bitcoin is still very much present.
Even though the halving is now less than a year away, HODLers maintain their customary slow and steady accumulation.
The fact that price-insensitive class appears to be consuming a non-trivial portion of the current supply is shown by the fact that HODLers are presently accumulating coins at a pace of roughly 42,200 BTC per month.
If we compare this behaviour to prior cycles, Glassnode argues that this regime of steady and increasing accumulation began just over two years ago, and that another six to twelve months may still be in store.
