Is Bitcoin Makes a Fake? Chain analyst Will Clemente examines the strength of the BTC surge to $ 47,000

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Prominent channel analyst Will Clemente weighs in on the strength of Bitcoin’s rally as the leading cryptocurrency climbs above $ 47,000.

In a new issue of Clemente’s newsletter, the channel’s analyst claims that crypto-whales, or entities holding over 1,000 BTC, have massively accumulated over $ 5 billion worth of Bitcoin (BTC) over the past few years. weeks.

“One of the most interesting developments over the past 1-2 weeks has been the increase in entity holdings (legally grouped addresses) with over 1,000 BTC (aka whales) … As of July 27, whales added 107,150 BTC to their holdings. “

Source: Will Clemente

Clemente is also examining the activities of long-term holders with the aim of determining whether Bitcoin’s rally above $ 47,000 is a bull trap or a dead cat bounce.

According to the chain’s analyst, the investor cohort does not exhibit similar behaviors to the rebound from December 2017 to January 2018 when Bitcoin peaked below $ 17,000.

“During the dead cat of 2017 (the scenario that many seem to base this framework on), there were massive sales from market players who had not moved their parts for at least 6 months. They took exit cash at the first opportunity given to them.

We’re not actually seeing the same behavior currently, invalidating the dead cat’s bounce story from a channel perspective so far. Long-term holders are currently sitting tight and holding on. “

Source: Will Clemente

The on-chain analyst is also looking at funding rates and leverage ratio to potentially determine whether or not traders are speculating heavily in Bitcoin derivatives and futures markets.

According to Clemente, funding rates and the leverage ratio are currently low, suggesting that the recovery may be due to organic buying and selling in the spot markets.

“The fact that funding is so low compared to what it was at the same price levels in February shows that this rally is much healthier and focused on the spot rather than derivatives. The leverage is also relatively low compared to when BTC was at the same price points in February. To show once again that this rally has been healthy.

Source: Will Clemente

Although Clemente says he sees bullish signals on the channel, he does highlight a lagging metric that could be seen as a red flag.

“Finally, we have the number of transactions, adjusted for movements between entities to filter out noise. [I’m] see slow progress in this area, but would like to see more follow-up with higher prices. “

Source: Will Clemente Don’t Miss a Beat Subscribe to receive crypto email alerts straight to your inbox Follow us on Twitter, Facebook and Telegram Surf The Daily Hodl Mix Check the latest news Disclaimer: The opinions expressed in Daily Hodl are not investment advice. Investors should do their due diligence before making high risk investments in Bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may suffer is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in Affiliate Marketing.

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