Closely-followed analyst Will Clemente says he’s seeing on-chain signals indicating that strong hands are aggressively buying the Bitcoin dip.
Clemente tells his 123,400 Twitter followers that in the past month, long-term holders have quietly accumulated massive amounts of BTC to offset the selling of short-term holders.
[adinserter block="1"]“In the last 30 days, long-term holders have added 579,940 BTC to their holdings while short-term have reduced their holdings by 521,983 BTC.”
Looking at short-term holders, Clemente highlights a tweet from Lex Moskovski, CIO of crypto-focused hedge fund Moskovski Capital, showing how these entities are parting with their BTC and taking losses comparable to the bear market of 2018 and the coronavirus-induced panic in March last year.
“Bitcoin short-term holders capitulated yesterday. They took losses on par with all the major drawdowns in Bitcoin history.”
While short-term holders sell, Lex Moskovski emphasizes that billions and billions of dollars worth of capital are flowing into exchanges in the form of stablecoins, suggesting that investors who are staying on the sidelines are getting ready to enter the crypto markets.
“Supply of stablecoins on exchanges reached new ATH (all-time high) of $17 billion. Plenty of dry powder to buy dips, no wonder Bitcoin below $30,000 was scooped so fast.”
At time of writing, Bitcoin is trading at $34,349, up 4.50% in the last 24 hours, according to CoinMarketCap
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