Popular on-chain data analyst Will Clemente explains how Bitcoin (BTC) will flip bullish, noting on ekey factor for it to happen.
Furthermore, Will Clemente analysizes the cost basis for short-term holders (STHs) of Bitcoin (BTC).
So, This is as it concerns the average price where a certain group of investors enters the market. Therefore, Bitcoin investors are short-term holders only when their coins are younger than five months.
So, Will Clemente explains.
“Bitcoin is below the short-term holder cost basis, which currently sits at $53,000…”
“Until this is reclaimed, not bullish. Not saying I am a ‘giga bear,’…”
“just cautious until the market shows me otherwise. Happy to flip bullish if reclaimed….”
“Bearish confirmation would be a failed underside retest of the band.”
Also, Will Clemente notes a bullish sentiment where a growing amount of BTC is moving towards entities with very little selling.
“Illiquid supply has recovered nicely over the last week, showing that supply is moving…”
“to entities with low spending behavior. (hold >75% of the coins they take in)…”
“This is a lot different than what we saw in May, as the opposite effect took place.”
Additionally, he mentions that BTC bulls watch the funding rates. So, as per Will Clemente, funding rates across crypto exchanges is expected to have a neutral or negative trend for BTC to move.
Then, Will Clemente adds.
“If you’re a bull, you would like to see it continue to carve out a regime of…”
“”mixed/negative, similar to what happened after September heading into October of last year….”
“This would show uncertainty from perpetual traders and if you theoretically saw funding…”
“muted as price grinds up would mean the market was amidst a disbelief rally.”
Lastly, Will Clemente concludes.
“TLDR: want to see BTC continue to consolidate and…”
“carve out that regime of mixed/negative funding.”
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