This is an important price level that Bitcoin investors need to watch out for, according to KOL Will Clemente

Well-known on-chain analyst Will Clemente says he has identified a key level of support for Bitcoin (BTC) following the recent Covid-induced decline in the crypto market.

Clemente told his 430,000 Twitter followers that $ 53,000 is a price to watch, and he wouldn’t be surprised if the benchmark cryptocurrency holds that price.

“The news of the Covid variant is bad news. We haven’t seen any major liquidations, however, so Bitcoin could make a long wick at the bottom.

The short term holder (STH) baseline, or what I call the “bull market support band,” is currently at $ 53,000”.

The source: WClementeIII / Twitter

Bitcoin is trading at $ 54,350 at press time, 8.6% less than the 24-hour high of $ 59,445.

In one new article On the Blockware Intelligence Newsletter blog, Clemente said the Spent Output Profit Ratio (SOPR) shows that investors are still not ready to sell their BTC at a loss, which means the support band could hold. SOPR is an on-chain indicator that shows whether BTC holders are selling for a profit or a loss.

Clemente added that strong Bitcoin holders are absorbing selling pressure from short-term holders.

“At the moment there is a clear bullish divergence between the illiquid supply shock rate and the price. The illiquid supply shock rate compares the liquid units (which sell 50% of the BTC they buy) and the highly liquid units (which sell 75% of the BTC they buy) to the illiquid units (which hold 75% of the BTC they buy). The divergence thus shows that the BTC supply is shifting to companies with a low sales history. A signal for a bull market. ”

Clemente concluded that he remains bullish on BTC despite the recent correction, but he is open to changing his stance as key indicators in the chain give clear bearish signals.

“In short, if we are actually in a bull market then the asymmetry is sloping upwards at the moment. The wind will change when prices begin to close below USD 53,000 for a few days, the SOPR moves below 1 and the ratio of illiquid supply shocks increases. ”

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