A widely followed on-chain analyst says he’s closely monitoring the buying activity of Bitcoin whales as BTC continues to hold above $40,000.
In a new Blockware Intelligence newsletter, Will Clemente says a new trend is emerging for Bitcoin whales, or entities holding over 1,000 BTC, as the deep-pocketed crypto investors begin to gobble up BTC after months of distribution.
Track live crypto price of 10000+ coins!
“Continuing to see whales holdings tick up after a multi-month downtrend. Watching over the next week or two to see if this trend continues. Looking promising thus far. This is one of the few on-chain metrics that provides us a peek into what’s going on on the demand side of the equation.”
Looking at the supply side of the equation, Clemente says short-term holders, or entities holding BTC for less than 155 days, are responsible for most of the selling in the last few months. He adds that short-term holders are still in pain as their cost basis hovers around the $47,000 area.
Clemente highlights that Bitcoin must reclaim the key price level to generate bullish momentum in the high timeframe (HTF).
“BTC has broken a three-month-long downtrend dating back to November. However, horizontal levels are far more important than diagonal. Major horizontal resistance still lies at $40,700; start closing above that, and we can start eyeing the confluence of yearly open and short-term holder realized price around $47,000. Above that $47,000 area, will have reclaimed HTF momentum in my opinion.
At time of writing, Bitcoin is trading $41,557, up 0.87% in the last 24 hours.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Mia Stendal/Andy Chipus