New Bitcoin Bear Phase Or Healthy Correction? Analyst Will Clemente examines on-chain trends in the BTC market

Prominent analyst Will Clemente examines Bitcoin’s on-chain data to see if the BTC market is going through a major turnaround.

In a new issue of the Blockware Intelligence newsletter, Clemente says Bitcoin’s abrupt decline has wiped billions of dollars’ worth of leveraged positions.

“When the forced liquidation sale of one trader triggered the stop loss of the next trader, about $ 1.23 billion in long positions were liquidated, of which $ 622 million came from ByBit … A total of about $ 4.4 billion Dollars of perpetual futures open interests deleted. “

Source: Will Clemente

According to Clemente, the drawdown, which saw Bitcoin plummeting from its 30-day high of $ 52,853 to a low of $ 43,285, is a much-needed breather to sustain BTC’s uptrend.

“I consider this a healthy cleanup, especially when you get a look at how investors behaved during the event.”

To reinforce his long-term bullish bias towards BTC, Clemente said the slump gave investors an opportunity to buy over $ 1 billion worth of BTC at a discount.

“So did this event change any of the broader trends we’ve been following? The answer is no. In fact, these accumulation trends have only intensified. Exchanges are down another 25,733 BTC ($ 1.18 billion) this week, which is reflected in our exchange supply shock metric. We also saw a surge in coins moving into strong hands, which was reflected in our illiquid supply shock rate this week, including positive pressure on Tuesday. “

Source: Will Clemente

Clemente adds that whales – capital investors with more than 1,000 BTC – also bought the dip.

“We also saw whales re-populate this week. This metric takes all entities with over 1,000 BTC and then filters out known entities that we have identified in the chain, such as Grayscale, Purpose ETF, QBTC, and most importantly, exchanges. In total, whales added 44,393 BTC ($ 2 billion) this week. “

Source: Will Clemente

Clemente points out that despite its tendencies to print large corrective moves, Bitcoin is still largely bullish.

“These short-term moves are easy to worry about, but I think it’s important to remember that the bigger picture is very optimistic.”

Don’t Miss A Beat – Subscribe to crypto email notifications straight to your inbox

Follow us on Twitter, Facebook and Telegram

Surf the daily Hodl mix

Check the latest headlines

Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and trades are made at your own risk and that you are responsible for any losses. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured image: Shutterstock / Tithi Luadthong

Comments are closed.