Renowned analyst Will Clemente examines Bitcoin’s on-chain data to see if an important trend in the BTC market is changing.

In the Blockware Intelligence newsletter, Clemente said that Bitcoin’s sudden drop has erased billions of dollars in leveraged positions.

“A liquidated trader triggered the next stop-loss order from another trader, about 1.23 billion US dollars were liquidated, of which 622 million US dollars from ByBit… In total, about 4.4 billion US dollars in open interest (OI) settled by Perpetual Futures. “

Perpetual Futures Open Interest | The source: Will Clemente

According to Clemente, the drop in price, which plunged Bitcoin from the 30-day high of $ 52,853 to lows near $ 43,000, is a much-needed boost to sustain BTC’s uptrend.

“I see this as a healthy cleanup, especially when you look at how investors behaved during the event.”

To back up his long-term bullish stance on BTC, Clemente said the falling price has given investors an opportunity to buy over $ 1 billion in BTC at a lower price.

“So is this event changing any of the broader trends we’re following? The answer is no. In fact, the accumulation trend is only getting stronger. BTC reserves on the exchanges fell another 25,733 ($ 1.18 billion) this week, as reflected in the Land Supply Shock Index. We have also seen an increase in the number of coins going into the big hands, which is reflected in the illiquid supply shock rate this week, including a positive number on Tuesday.

Supply shock rate | Source: Will Clemente

The analyst also provided data showing that whales – investors who own more than 1,000 BTC – are buying the dip.

“Also, whales replenished their populations during the week. This index looks at companies with over 1,000 BTC and then filters out the well-known companies that we identify in the chain, such as Grayscale, Purpose ETF, QBTC and, most importantly, exchanges. In total, whales added 44,393 BTC ($ 2 billion) this week. “

Whales filtered from all known entities | Source: Will Clemente

Clemente emphasized that Bitcoin is still largely bullish, although it tends to make larger corrective moves.

“It’s understandable if you are concerned about these short-term moves, but I think it’s important to remember that the broader outlook is very optimistic.”

Ton Vays Bitcoin forecast is set to hit $ 100,000 by mid-December

Veteran trader Tone Vays says Bitcoin will end its recent correction relatively soon, ahead of a massive six-digit rally.

In a new strategy video, Vays claims that BTC’s recent price action is reminiscent of July when the leading cryptocurrency fell to an annual low of below $ 29,000 before rising to $ 52,000 in less than a year.

“We’re in an environment very similar to the one we did in July. It’s crazy they should reappear in mid-September. It’s been a long time and this pattern for me. Looks very similar … I’d like a drop tomorrow see or get the price in the $ 43,000 range the next day and then a big rally. “

The source: Ton Vays

According to Vays, Bitcoin is likely to drop lower in the short term, offering traders the option to buy BTC near the $ 40,000 mark.

“I just think there will be another low… chances are that support will be broken. I don’t like the fact how many times the price has ricocheted off that support. I really think this is short term support. Another swing low and the opportunity to buy Bitcoin in the low $ 40,000 range mid-week. “

Assuming Bitcoin moves out of the USD 40,000 support area, Vays will then offer a path to BTC 100,000 before the start of 2022.

“The low of $ 40,000 is going to come in the next week or so … in early October, and then BTC breaks the $ 50,000 zone in mid to late October. It continues to break through the $ 65,000 at the beginning of the 11th month and then it will probably hover above $ 100,000 by the end of December. So I’m still sticking to my view that Bitcoin will cross the $ 100,000 mark in December. “

You can see the Bitcoin price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to AZCoin News

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