With Bitcoin hitting its highest levels since mid-May, surging up to over $45,000 at the time of writing, the crypto community is extremely bullish, yet again. It seems that even the U.S. Infrastructure Bill that intends to heavily tax cryptocurrency usage, has not had any effect. The bullish sentiment is also reflected in various on-chain analysis. Data shows that $50,000 is within reach.
A clear sign that several analysts were hoping was the top cryptocurrency passing the resistance it had met repeatedly from 200-days Moving Average (MA), which is actually sitting at $45,000. Popular analyst Will Clemente says a break out above could is expected and considers current dynamics a clear buy-in sign,.
It was in his latest weekly sitdown with Anthony Pompliano in his podcast show, that the 19 year old analyst stated:
“I’ll be watching to see if we might take a pause or a little breather there (200-day MA) because that’s kind of a mark that a lot of people in traditional finance look at to see if an asset is in a bullish or bearish phase… I’ll be looking for that, but I’m targeting right now $49,000-$50,000 and seeing how we’re going to kind of react there. I think it will perhaps play out there over the coming weeks.”
Since its recent breakout, Clemente is already looking at the next target, which sits at $57k. Looking at the top/bottom models for the Bitcoin’s price movement, he shared on Twitter:
Bitcoin looks ready to reclaim the yellow mid-line for bull run confirmation, which currently sits at $57K.
If confirmed, delta/top mean (orange) would be my next target at $92K.
If that level is then reclaimed, would be targeting top price model which currently sits at $175K. pic.twitter.com/5ddMwW4qOS
— Will Clemente (@WClementeIII) August 9, 2021
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In the discussion with the “Pomp”, Clemente did issue a warning that the bullish sentiment could only sustain if we are not suddenly going to see long-time holders dump their holdings and “looking for exit liquidity.” Glassnode data shows that these long-term holders are currently not liquidating their assets, which is significantly “different to the 2018 bear market where old hands were taking exit liquidity on the most relief rallies.” He later tweeted the same information to his followers:
Unlike the 2017 dead cat bounce, long-term holders are not looking for exit liquidity to abandon ship. They’re sitting long and strong. https://t.co/mHkaTOHETy
— Will Clemente (@WClementeIII) August 9, 2021
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Clemente did raise another potential red flag on the on-chain metrics. According to him, on-chain activity for Bitcoin is surprisingly low and if this trend were reversed the current bullish momentum could subside. He said:
“This is kind of the one thing that is a red flag to me – we don’t have more on-chain activity in terms of when we look at the mempool or the number of transactions, active addresses, all these kinds of things, which I personally suspect are kind of lagging indicators… If we start to move back up, obviously you’re going to want to see this transaction activity come back in as well. I suspect it will, but you never know, and it’s just something to keep an eye on.”
In his latest tweet, Clemente commented on the significant activity of Bitcoin whales over the past months:
Big money has been buying. Since May 19th, entities with 10K-100K BTC have added +269,450 to their holdings. ($12.1B)
These entities have between $450M-$4.5B of their capital allocated to Bitcoin. pic.twitter.com/Sv1xZfUukC
— Will Clemente (@WClementeIII) August 10, 2021
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Bitcoin is currently trading at $45,219, according to CoinMarketCap data.
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Source: Igaming
