The current bearish price action of Bitcoin (BTC) looks different from BTC’s May collapse in a number of key ways, according to on-chain analyst Will Clemente.
Clemente tells his 470,600 Twitter followers that “strong hands,” meaning entities who historically take in and hold more than 75% of their BTC, are currently buying from “weak hands,” which are entities that take in and hold less than 75%.
The analyst says this contrasts from May’s bear market, which saw the opposite when previously strong hands became weak hands.
Bitcoin is trading at $48,221.01 at time of writing, up 2.33% in the past 24 hours. However, the top-ranked crypto asset by market cap is down more than 24% from a month ago and more than 30% down from its all-time high of $69,044.77, reached on November 10th.
Clemente noted in a recent newsletter that the cost basis, the average price where a certain group of investors entered the market, for short-term holders of Bitcoin is a key metric to watch when determining whether BTC will flip bullish. Bitcoin investors are considered short-term holders if their coins are younger than five months.
Explains Clemente,
“Bitcoin is below the short-term holder cost basis, which currently sits at $53,000. Until this is reclaimed, not bullish. Not saying I am a ‘giga bear,’ just cautious until the market shows me otherwise.
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