Closely followed on-chain analyst Will Clemente says he’s found the most compelling chart in crypto.
The analyst shares chart with his 652,600 Twitter followers showing the movement of the Bitcoin (BTC) market cap versus the number of sidelined Tether (USDT) and USD Coin (USDC).
Clemente’s chart appears to show a correlation between the movement in Bitcoin’s price and sidelined stablecoins. At time of writing, the amount of sidelined stablecoins is suggesting that the price of BTC is likely to go up, as per the chart.
“In my opinion this is the most compelling chart in crypto:
When large amounts of stablecoins are on the sideline relative to crypto’s market cap, market participants have to chase the rally higher. When there’s a lot of stables deployed but no one left to buy, market runs out of new buyers.”
The analyst also points out BTC has reclaimed the crucial 200-week moving average (200WMA) for the first time in July, which could bode well for the top crypto asset by market cap.
“BTC has reclaimed its 200WMA for the first time in a month.
Keep in mind still 5 days until this weekly candle closes, but so far so good.”
Clemente then says BTC has a history of falling behind the 200WMA very briefly before the king crypto comes roaring back after each dip.
“Bitcoin has only been this far below its 200-day moving average a handful of times (<2%), each of which looked terrifying to buy at the moment, but terrifyingly obvious in hindsight.”
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