Several metrics indicate Bitcoin is ripe for a reversal, according to on-chain crypto analyst Will Clemente.
Clemente tells his 126,400 Twitter followers that Bitcoin Perpetual Futures funding has been negative recently, which he says is a bullish signal.
“Funding has now been negative for 11 days straight. Translation: Shorts are paying longs to keep their positions open. As a rule of thumb, for anyone not familiar with how funding works:
Prolonged high funding = Bearish
Prolonged negative funding = Bullish”
Last week, Clemente penned a blog post noting that Bitcoin’s liquid supply ratio indicated there’s been rotation of BTC from weak to strong hands.
“There is a clear bullish divergence in the ratio, with a lower low made in price and a higher high in the ratio.
AKA strong hands are increasingly buying as price is going down.”
“Once again we have a higher low in the ratio while there’s a lower low in price.
Last time there was a bull div this clear was in late January, when price went on a strong rally following.”
As for the timing of his prediction, Clemente says these metrics indicate Bitcoin’s price could see a reversal in the next few weeks.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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