On-Chain Analyst – Bitcoin Bears are in for a Rude Shock
Those who have a bearish view of Bitcoin (BTC) may be in for a surprise, according to prominent on-chain expert Will Clemente. The widely following expert tells his 273,000 Twitter followers that Bitcoin bears would be shocked since he thinks BTC’s value will be considerably higher in 30 days.
“Bears are incorrect, goodnight. In a month, wake me up.”
Clemente backs up his perspective with a graphic correlating the price of BTC to the supply ratio of illiquid coins, or altcoins that are seldom transacted. As per the on-chain expert, the illiquid supply shock ratio is a useful leading indication since BTC continues to follow the metric’s upswings or downticks.
“The fact that supply became liquid in late April/May was a leading indication of the subsequent price decrease. Supply was tied up in late June/early July, and this bull div was just another leading indication of the subsequent price rollback.”
Clemente further claims that both whales (groups with over 1,000 BTC) and minnows (entities with less than 10 Bitcoin) have been steadily accumulating since the flagship cryptocurrency fell over 50% in May 2021. The well-known analyst claims that he has created a model based on Glassnode’s data that establishes a floor price for Bitcoin. As per Clemente, the ultimate bottom for Bitcoin is presently roughly 10% below current levels while writing this article.
Illiquid Supply Shock ratio has been a good leading indicator over the past few months. Impulses in both directions have resulted in price action following.
As the metric continues to grind slowly upward, currently at levels prev. 58K BTC, watching for another major impulse. pic.twitter.com/qjwB2sT4Ot
— Will Clemente (@WClementeIII) August 17, 2021
“By utilizing Glassnode’s illiquid supply info, this approach attempts to predict a bottom based on Bitcoin’s real-time shortage. Even though the price has temporarily fallen below in mid-2017 and early in 2021, it has never remained below for long and, in my view, stands the test of time as a reference for an anticipated floor. Right now, $38,283.”