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The first and largest cryptocurrency by market capitalization, Bitcoin (BTC), has spotted an interesting pattern on its chart. Crypto analyst "Jelle" highlights a head and shoulders formation on the Bitcoin price chart, saying this has a target of $58,000.
Jelle highlighted that the only thing required is a resistance break ahead for the pattern to gain traction.
This #Bitcoin Head & Shoulders pattern has a target of $58,000.
— Jelle (@CryptoJelleNL) July 28, 2023
Needs to break the resistance ahead -- and we can get moving. pic.twitter.com/9H4Dj4jC0w
The head and shoulders pattern, an often reliable indicator, might suggest an imminent reversal. The pattern appears as a baseline with three peaks, where the outside two are close in height and the middle is the highest.
Bitcoin (BTC) sustained above the $29,000 mark at press time, having barely budged following the Federal Reserve's most recent rate hike.
Crypto analyst Ali says to watch out for a spike in the volatility of the Bitcoin price as a large number of idle BTC has been exchanging hands over the past 24 hours, which coincides with a 10,000 BTC increase in supply on crypto exchanges.
At the time of writing, BTC was marginally down in the last 24 hours to $29,208.
Buying power remains on market
On-chain analytics firm CryptoQuant recently shared an interesting take on the Bitcoin market. The stablecoin supply ratio (SSR), defined as the market capitalization of BTC divided by the market capitalization of all stablecoins, demonstrates the purchasing power of stablecoins over the Bitcoin supply.
Since the end of March, trading volume has decreased and SSR has stagnated, while the circulating quantity of the stablecoin Tether (the largest stablecoin in terms of volume) has increased, followed by an increase in Bitcoin's price.
Tomiwabold OlajideSSR demonstrates a high degree of exchange activity and a falling volatility trend, indicating a strengthening status of stablecoin buying power, which remains bullish.
One possible conclusion is that large investors have stockpiled stablecoins in anticipation of higher prices. A low SSR indicates that Bitcoin has great purchasing power, which indicates the possibility of a positive trend when large buyers reenter the market to buy.
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