One of the popular names among On-Chain analysts. Will Clemente, after the crypto market’s recent price drop from the new variant of COVID-19 Bitcoin (BTC) announced that it has set a new level of support for
Posting on his Twitter account with 433,000 followers, Clemente stated that the price level that investors should consider is currently $ 53,000, and since it has not seen a big fluctuation yet, it would not surprise him that the largest crypto asset by market cap has regressed to these price levels.
“The news of the COVID-19 variant is not ideal. It may still affect our ability to see large liquidations or open interest. However, the STH (short-term holder) cost basis, or what I refer to as the ‘on-chain bull market support band’, is currently at $53,000.”
bitcoin At the time of writing, it is trading around $54,270.
Analyzing in the “Blockware Solutions Market Intelligence Bulletin” blog post, Clemente says that output profit ratio (SOPR) data shows that BTC investors are not yet ready to sell their tokens at a loss, which is a sign that the support band may hold. SOPR is an on-chain metric that shows whether BTC holders are selling at profit or loss.
Clemente also noted that he sees a pattern in which strong Bitcoin holders absorb selling pressure from short-term holders.
“There is currently a clear bullish divergence between the illiquid supply shock rate and the price. The illiquid supply shock is a model that compares liquid assets (which sell 50% of the BTC they receive) and highly liquid assets (which sell 75% of the coins they buy) to illiquid assets (which hold 75% of the coins they buy). This means that the supply has moved to organizations with little sales history. If this situation turns bearish, I would say it will be bearish, but for now it remains a stable slope.”
Clemente thinks that despite the recent correction, BTC is still in an uptrend, but he also stated that he will change his views once he sees that important on-chain metrics are giving clear bearish signals.
“All in all, if we’re really in a bull market, the asymmetry is very upside down right now. The invalidation will begin as it closes below $53,000 for a few days, starting to see SOPR break below and fail to retrace 1 from the bottom, plus the illiquid supply shock tumbling.”
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.