Popular on-chain data analyst William Clemente says when a metric hits a significant bitcoinHe says that (BTC) will be bullish.
Speaking in Blockware Intelligence’s latest newsletter, Clemente said that Bitcoin (BTC) examined the cost basis for short-term holders (STHs).
The cost basis, as it pertains to on-chain analytics, is the average price at which a given group of investors enters the market. Bitcoin investors are considered short-term holders if their coin is less than five months old.
“Bitcoin is currently below its short-term owner cost base of $53,000. Until this is undone, there will be no ascension. I’m not saying I’m a “giga bear”, I’m just suggesting you be cautious until the market shows me otherwise. If it’s taken back, we’d be happy to go up. A bearish confirmation would be a failed downside retest of the group.”
Identifying a bullish catalyst for Bitcoin, Clemente is increasingly BTCIt says it’s moving towards assets with little sales history. He noted that this particular metric is very different from what it was in May just before the big fix.
“Liquid supply has recovered well over the past week, indicating a shift in supply to institutions with low spending behavior. (Hold >75% of the coins they received) This is very different from what we saw in May because the opposite effect occurred.”
The analyst also stated that BTC bulls can follow funding rates. According to Clemente, funding rates on crypto exchanges need to maintain a neutral or negative trend before BTC starts a new bull run.
“If you’re a bull, you want to see it continue to form a mixed/negative regime, similar to what happened after September as we entered October last year. This will indicate uncertainty from persistent traders, and in theory, if you see funding mute as prices rise, it means the market is in the middle of a rally of disbelief.
Long story short, I want to see BTC continue to consolidate and divide this mixed/negative financing regime.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.