Closely followed on-chain analyst Will Clemente is laying out what he thinks is next for Bitcoin (BTC) now that it’s broken resistance at $42,000.
In a new interview with Anthony Pompliano, Clemente says Bitcoin’s 200-day moving average will play a crucial role ahead and could act as a signal for big money players who have their eyes on BTC.
[adinserter block="1"]“I think there’s really nothing but air here until about $48,000, but I think the 200-day moving average is going to give a bit of resistance and that’s around $45,000 right now. I’ll be watching to see if we might take a pause or a little breather there because that’s kind of a mark that a lot of people in traditional finance look at to see if an asset is in a bullish or bearish phase…
I’ll be looking for that, but I’m targeting right now $49,000-$50,000 and seeing how we’re going to kind of react there. I think it will perhaps play out there over the coming weeks.”
Clemente says that in order for BTC to hold strength, it’s critical that long-term holders don’t start dumping their coins or “looking for exit liquidity.”
The analyst also pinpoints a potential “red flag” in Bitcoin’s on-chain metrics. According to Clemente, the amount of on-chain activity for Bitcoin is ominously low and will need to pick up if BTC is to sustain its bullish momentum.
“This is kind of the one thing that is a red flag to me – is the the fact that we don’t have more on-chain activity in terms of when we look at the mempool or the number of transactions, active addresses, all these kinds of things, which I personally suspect are kind of lagging indicators. I think if you start to see higher prices, if we start to move towards $45,000 plus or moving towards $50,000, I think you’ll start to see an uptick in this as volume picks up and people become interested again…
This is something you want to look for. If we start to move back up, obviously you’re going to want to see this transaction activity come back in as well. I suspect it will, but you never know, and it’s just something to keep an eye on.”
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