By market capitalization, Bitcoin (BTC), the first and biggest cryptocurrency, has identified an intriguing pattern on its chart. On the Bitcoin price chart, crypto expert “Jelle” points out a head and shoulders formation with a target of $58,000.
Jelle emphasised that for the pattern to take off, a resistance break ahead is all that is necessary.
A likely sign of an impending turn around is the head and shoulders pattern. The pattern appears as a baseline with three peaks, the centre peak being the tallest and the outside two peaks being very close in height.
At the time of publication, Bitcoin (BTC) had maintained above the $29,000 level and had not moved since the Federal Reserve’s most recent rate rise.
Watch out for a rise in price volatility, warns crypto expert Ali, as a lot of idle BTC has been changing hands over the past 24 hours, along with a 10,000 BTC increase in supply on cryptocurrency exchanges.
BTC was trading at $29,208 at the time of writing, slightly lower from the previous day.
Buying power remains on market
An intriguing perspective on the Bitcoin market was recently offered by on-chain analytics company CryptoQuant. The stability of stablecoins over the Bitcoin supply is shown by the stablecoin supply ratio (SSR), which is calculated as the market capitalization of BTC divided by the market capitalization of all stablecoins.
Trading volume has declined and SSR has been same since the end of March, while the volume of the largest stablecoin by volume, Tether, has climbed, which has led to a rise in Bitcoin’s price.
SSR has a high level of exchange activity and a declining volatility trend, which point to a strong stablecoin buying power and a continued bullish position.
Large investors may have accumulated stablecoins in expectation of rising values, according to one probable conclusion. When significant purchasers return to the market to buy, a low SSR suggests that Bitcoin has strong purchasing power, which suggests the probability of a bullish trend.
