Popular on-chain analyst Will Clemente thinks certain metrics indicate Bitcoin (BTC) is just now entering the main phase of the bull market.
Clemente tells his 393,900 Twitter followers that “long-term holders buy BTC into weakness and sell into strength.” The analyst notes that long-term holders have just begun to sell more than they buy for the first time in six months.
Explains Clemente in his weekly Blockware Intelligence Newsletter,
“This week we have seen our first red prints in long-term holder net position change. This looks at the 30-day net change in long-term holder supply… This is representative of long-term holders starting to sell into strength.
As we have discussed many times: long-term holders buy into weakness (don’t perfectly buy the bottom) and then sell into strength (don’t perfectly sell the top).
This is natural bull market behavior; as you can see in 2020 this distribution began in October and peaked out in January of this year.”
Clemente also notes that Bitcoin’s average transaction fees appear to be launching on an uptrend, similar to previous bullish price rallies.
Looking at the balance of Bitcoin on exchanges, Clemente highlights that investors continue to take out BTC from crypto exchanges at a high rate.
“Exchange balances are currently in heavy outflows. Zooming out you can see the clear change in market dynamics following March 2020, as outflows dominated.”
Bitcoin is trading at $64,066.68 at time of writing and is down nearly 2.3% in the past 24 hours.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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