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Crypto analyst "Carl from the Moon" has spotted a key Bitcoin pattern that might cause its price to go down to $25K or higher to $29K.
"Carl from the Moon" sees a symmetrical triangle pattern on the Bitcoin chart, which he says might break soon.
CHART: #Bitcoin Symmetrical Triangle can break soon. pic.twitter.com/GRdlbNURw3
— Carl From The Moon (@TheMoonCarl) May 19, 2023
The symmetrical triangle is a consolidation chart pattern that occurs when the price action trades sideways. It is considered a neutral pattern, as two trend lines are converging at the intersection point.
Breakouts or downs coincide with stronger volumes, with many traders on the sidelines waiting for the market to decide in which direction the price wants to go.
The crypto analyst gives the Bitcoin price target as $25K if the price further breaks down or $29K if the price moves to the upside.
As the cryptocurrency market remained risk-averse on Friday, Bitcoin has continued to trade in the red. Following the hawkish remarks made by other central bank officials on Thursday, investors are on the lookout for any signs indicating the state of the U.S. economy, with a focus on Fed Chair Jerome Powell's address.
Following a drop the day ahead, Bitcoin (BTC) remained unchanged at slightly under $27,000. Investor risk appetite was kept in check by the likelihood that the Fed might raise interest rates by another 25 basis points next month.
Bitcoin was worth $26,930 at the time of writing, down 1.22% from the previous day. Markets were optimistic earlier in May that the Fed would halt its cycle of tightening liquidity next month and shift to rate decreases later this year. Recent indications, nevertheless, could seem to suggest otherwise.
🔐 One of the primary signs of fear is when the top trending #crypto keywords are almost all related to hardware wallets & security. We saw similar safety concerns from traders in November 2021 after the @FTX_Official collapse. That marked a market bottom. https://t.co/0MIfQq1TSd pic.twitter.com/nFIeAwmVPf
— Santiment (@santimentfeed) May 19, 2023
However, on-chain analytics firm Santiment believes that a market bottom might be imminent as one of the primary signs of fear is showing up on the market.
Meanwhile, BTC holders continue to accumulate. Glassnode reports that the Bitcoin supply held by Shrimp Entities that is less than one BTC continues to increase, expanding to an ATH of 1.31 million coins.