According to an on-chain analyst, Bitcoin will start its bull run under one fundamental condition. Popular on-chain data analyst William Clemente says that once a metric reaches a significant level, Bitcoin (BTC) will be bullish. Detail Cryptokoin.com’can also be tracked.
Will Bitcoin go up?
Renowned analyst Clemente looks at the cost basis for Bitcoin’s short-term holders. The cost basis, as it relates to on-chain analytics, is the average price at which a given group of investors enters the market. Analyst says:
Bitcoin is currently below its short-term owner cost base of $53,000. Until this is retracted, it is not in an uptrend. I’m not saying I’m a “giga bear”, just be cautious until the market shows 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.
Clemente, who has identified a bullish catalyst for Bitcoin, says that increasing amounts of BTC are moving towards assets with little sell history. He says this particular metric is very different from what it was in May just before the big fix. The analyst says:
The illiquid supply has recovered well over the past week, showing that supply is shifting to institutions with low spending behavior. This is very different from what we saw in May, because the opposite effect occurred.
The analyst also says 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. Clemente says:
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 show the 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.
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