Here is the next step for Bitcoin now that it exceeds $ 42,000, according to chain analyst Will Clemente

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Closely watched channel analyst Will Clemente lays out what he believes is the next step for Bitcoin (BTC) now that its resistance is broken at $ 42,000.

In a new interview with Anthony Pompliano, Clemente says Bitcoin’s 200-day moving average will play a crucial role in the future and could serve as a signal for big players who have their eyes on BTC.

“I think there is really only air here up to around $ 48,000, but I think the 200 day moving average is going to give a bit of resistance and it’s around $ 45,000. right now. I’ll be looking to see if we could take a break or a little break there because it’s kind of a mark that a lot of people in mainstream finance look at to see if an asset is in a bullish or bearish phase …

I’m going to look for that, but I’m aiming right now at $ 49,000 to $ 50,000 and I see how we’re going to react there. I think maybe it will play out there in the coming weeks.

Clemente says that in order for BTC to maintain its strength, it is essential that long-term holders don’t start throwing their coins away or “looking for exit cash.”

The analyst also identifies a potential “red flag” in Bitcoin’s on-chain metrics. According to Clemente, the amount of on-chain activity for Bitcoin is worrying and will need to increase if BTC is to maintain its bullish momentum.

“That’s kind of the only thing that’s a red flag to me is the fact that we don’t have more on-chain activity in terms of when we look at the mempool or the number of trades, the active addresses, all of that stuff, which I personally suspect to be sort of lagging indicators. I think if you start to see higher prices, if we start heading towards $ 45,000 and up or around $ 50,000, I think you’ll start to see an increase as the volume increases and people get interested again…

This is something you want to research. If we start to go up, obviously you’ll want to see that trading activity come back as well. I suspect it will, but you never know, and it’s just something to watch out for.

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