Bitcoin’s Chart Pattern: An Omen of Transformation?
Bitcoin, the world’s largest cryptocurrency by market capitalization, may be preparing for a significant shift in the short term, signaled by the nearing completion of an influential chart pattern.
Renowned crypto analyst “Carl from the Moon” recently drew attention to an inverse Head and Shoulders Pattern on Bitcoin’s four-hour chart on Twitter. This pattern, if confirmed, could herald a positive move for the cryptocurrency.
The inverse Head and Shoulders Pattern is often interpreted as a sign of an impending bearish-to-bullish trend reversal, suggesting that a downward trajectory could soon reach its conclusion. The pattern emerges when the price dips to lows before ascending, dips lower than the preceding low and then rises, and lastly, dips again but not as low as the second instance. Once a bottom low is established, the price ascends towards the resistance located near the peak of the previous lows.
Impact of BlackRock Inc.’s Bitcoin ETF Application
On a recent Tuesday, Bitcoin struggled to sustain an initial rally beyond $27,000. The ripple effect of BlackRock Inc.’s bid to launch a U.S. exchange-traded fund that trades in cryptocurrency began to wane. BlackRock had submitted an application to the Securities and Exchange Commission for a spot Bitcoin ETF on June 15.
At one point, the leading digital asset climbed to intraday highs of $27,173, but then trimmed the gain to trade at $26,830 at the time of press.
Bitcoin Volatility Remains at Historic Lows
Current market indicators show that Bitcoin’s volatility, volume, and realized prices continue to hover at multi-year lows. This data, presented by on-chain analytics firm Glassnode, evidences a prevalent investor indifference towards Bitcoin.
Yet, underneath the surface of this apparent disinterest, HODLers persist with their traditional slow and steady accumulation. A substantial part of the present supply seems to be absorbed by the price-insensitive class, demonstrated by the fact that HODLers are currently amassing coins at a rate of about 42,200 BTC each month.
According to Glassnode, this regime of consistent, incremental accumulation started just over two years ago and, if paralleled with past cycles, could continue for another six to twelve months.
