Bitcoin, the biggest cryptocurrency by market capitalization, might be gearing up for a major move in the short term as a prominent chart pattern nears completion.
Crypto analyst "Carl from the Moon" on Twitter has spotted an inverse Head and Shoulders Pattern on Bitcoin's four-hour chart, which might result in an upside move if validated.
The inverse Head and Shoulders Pattern is believed to suggest a bearish-to-bullish trend reversal, which might also indicate that a downward trend is about to come to an end.
This pattern appears when the price drops to lows before rising; the price falls below the previous low and then rises again and, finally, the price falls again but not as far as the lows reached in the second instance. Once a bottom low is established, the price moves upward toward the resistance found near the top of the previous lows.
On Tuesday, Bitcoin found it difficult to maintain a brief ascent beyond $27,000 as the positive impact of BlackRock Inc.'s application to launch a U.S. exchange-traded fund trading in the cryptocurrency started to fade. On June 15, BlackRock submitted an application to the Securities and Exchange Commission for a spot Bitcoin ETF.
At one point, the biggest digital asset reached intraday highs of $27,173 but then pared the gain to trade at $26,830 as of press time.
Volatility remains at multi-year lows
Volatility, volume and realized prices continue to be at multi-year lows, according to on-chain analytics company Glassnode, demonstrating that investor apathy toward Bitcoin is very much in effect.
Volatility, volumes, and realized values are at multi-year lows, indicating that Bitcoin investor apathy is firmly in play.— glassnode (@glassnode) June 19, 2023
However, under the surface, HODLers continue their classic slow and steady accumulation, with the halving now less than 1yr away.
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The halving is now less than a year away, yet underneath it, HODLers continue with their typical gradual and steady accumulation.
A nontrivial amount of the present supply appears to be being consumed by the price-insensitive class, as evidenced by the fact that HODLers are now acquiring coins at a rate of about 42,200 BTC each month.
Glassnode claims that this regime of steady and progressive accumulation started just over two years ago and that another six to twelve months may still be in store if we compare this behavior to previous cycles.