New Bitcoin bear phase or healthy correction? Analyst Will Clemente Examines Chaining BTC Market Trends

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Prominent analyst Will Clemente examines data on Bitcoin’s chain to see if the BTC market is undergoing a major trend change.

In a new episode of the Blockware Intelligence newsletter, Clemente says that Bitcoin’s sharp fall has wiped out billions of dollars in leveraged positions.

“As a trader forced the clearance sale triggered the next stop-loss for traders, around $ 1.23 billion in long buys were liquidated, of which $ 622 million came from ByBit… In total, about 4 , $ 4 billion in open perpetual term interest has been wiped out. “

Source: Will Clemente

According to Clemente, the pullback which saw Bitcoin plunge from its 30-day high of $ 52,853 to a low of $ 43,285 is a much-needed respite to keep BTC’s bullish trend sustainable.

“I see this as a healthy cleanup, especially when you see how the investors acted throughout the event.”

To support its long-term bullish bias in BTC, Clemente says the fall gave investors the opportunity to buy more than $ 1 billion worth of BTC at a discount.

“So, did this event change any of the larger trends we’ve been following? The answer is no. In fact, these tendencies towards accumulation have only intensified. Trade fell another 25,733 BTC ($ 1.18 billion) this week, as evidenced by our currency supply shock metric. We also saw a spike in coins move into strong hands, reflected in our illiquid supply shock ratio this week, including a positive impression on Tuesday. “

Source: Will Clemente

Clemente adds that deep-pocketed whale investors in possession of over 1,000 BTC have also bought the dive.

“In addition, we have seen whales increase their holdings again this week. This metric takes all entities with over 1,000 BTC, then filters out known entities that we have identified on the chain, such as Grayscale, Purpose ETF, QBTC, and most importantly, exchanges. In total, whales added 44,393 BTC ($ 2 billion) this week.

Source: Will Clemente

Clemente points out that Bitcoin is still largely bullish despite its tendency to print large corrective moves.

“It’s easy to worry about these short-term moves, but I think it’s important to remember that the whole picture is very optimistic.”

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