Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

These Entities Are Buying the Bitcoin Collapse, According to On-Chain Analyst Will Clemente

by Daily Hodl Staff
May 23, 2021
in Bitcoin, Trading

An analyst who continues to build his following with his timely on-chain signals is unveiling the group of investors who are buying the big Bitcoin correction.

In the latest installment of The Pomp Letter, Will Clemente says that a significant portion of the BTC that was sold during Wednesday’s collapse that saw Bitcoin crash from $43,500 to $30,000 came from short-term holders.

“By age, the cohort I saw that had the largest uptick in selling was from coins aged one week to one month old.”

Source: Will Clemente

The on-chain analyst adds that the entities that did the most selling on that day were large Bitcoin whales who unloaded tens of thousands of BTC.

“By size, the cohort I saw the most selling from was entities with at or over 100,000 BTC. This cohort was reduced by 89,000 BTC on Wednesday.”

Source: Will Clemente

As for the buyers of the massive BTC supply, Clemente highlights that a new breed of whales absorbed most of the selling pressure.

“The cohort that did the most buying throughout the dip was entities holding 10,000 -100,000 BTC. This cohort added 122,588 BTC to their holdings in aggregate on Wednesday. One interesting note: a lot of buying was coming from the west (US). I say this because at one point during the bounce, Coinbase was trading at a $3,000 premium to other exchanges. This means western buyers on Coinbase were spamming the green button.

Since Wednesday, exchange flows have normalized and are no longer bearish. OTC (over-the-counter) desk outflows spiked during the dip, showing strong buying from high net worths/institutions.”

Source: Will Clemente

Clemente is also looking at the volume distribution of Bitcoin prior to the correction. According to the on-chain analyst, the heavy volume distribution above $40,000 suggests that BTC is in the mid-cycle accumulation of the bull market.

“Over the last two to three months, there was a ton of volume in the $40,000-$60,000 range, especially between $53,000-$58,000. Over 25% of supply has moved above $40,000 in total… This is what current on-chain volume distribution looks like.” 

Source: Will Clemente

To compare with the previous boom cycles, the on-chain analyst shows the weak volume distribution of BTC when the leading cryptocurrency topped out in 2017.

“This is what distribution looked like at the top in 2017.”

Source: Will Clemente

The on-chain analyst also highlights that when Bitcoin topped out in 2013, the volume distribution looked weak as well.

“This is what distribution at the top of 2013 looked like.”

Source: Will Clemente

According to Clemente, the current volume distribution does not remotely resemble the previous bull market tops. He goes on to conclude that while the dip was unexpected, it was necessary to keep the bull market sustainable.

“We have a large leverage reset and wipeout of weak hands. At this point, it’s just going to take some time for those young coins recently sold to find a new home. Still bullish for the remainder of the bull run.”

Check Price Action

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

 
Check Latest News Headlines


 
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/S.Gvozd

Submit a Press Release

Industry Announcements

  • Kriptomat Makes Automated Trading Available to All
    May 24, 2022
  • Spritz Finance Raises $2.5 Million in Pre-Seed Funding
    May 24, 2022
  • Bored.Ai Opens Text2Art Minting for the First Time
    May 24, 2022
  • Nitro League Releases Updated Roadmap To Launch Its Racing Metaverse
    May 24, 2022
  • Crypto Derivative Traders Can Access TradingView With Broker Eightcap
    May 24, 2022
  • DeFiChain Forms Technical Committee To Further Decentralize the Consensus Code Governance
    May 23, 2022
  • LongHash Ventures Partners With Protocol Labs To Launch the Third LongHashX Accelerator Filecoin Cohort
    May 23, 2022
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$29,582.00
$29,582.00
1.11%
Ethereum
$1,959.10
$1,959.10
0.36%
Cardano
$0.513276
$0.513276
0.1%
XRP
$0.402557
$0.402557
0.17%
Dogecoin
$0.082825
$0.082825
0.79%

Spotlight

  • Crypto Analyst Warns Six Factors Will Drive Bitcoin (BTC) Prices Lower in the Coming Days
    May 20, 2022
  • Two Ethereum Challengers Gearing Up for Rallies As Crypto Looks Turbo Bullish: Top Analyst
    May 23, 2022
  • Ripple Signs New Partnership With International Money Transfer Firm To Use XRP for Cross Border Payments
    May 18, 2022
  • US Lawmaker Introduces Bill To Protect Bitcoin (BTC) 401(k) Investments
    May 21, 2022

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2022 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX

© 2022 The Daily Hodl