Crypto Whales Accumulated $2,200,000,000 in Bitcoin This Week, Says On-Chain Analyst William Clemente
On-chain analyst William Clemente says whales are once again diving into the Bitcoin markets.
In his latest newsletter, Clemente notes that the number of new users on the Bitcoin (BTC) network is at a new all-time high.
“First, let’s take a look at this chart representing the net growth of users, or ‘entities’ coming on the Bitcoin network. The growth of new users is now reaching new all-time highs. Over 50,000 new entities coming on-chain a day.”
Clemente says BTC whales are once again accumulating along with retail investors. The analyst says that this trend “has done nothing but accelerate this week”, with whales buying about $2,200,000,000 worth of BTC.
“Retail has been buying heavily for weeks now, but we finally got the uptick in whales that we were waiting for. There were 17 new whales birthed on the blockchain this week, while at the same time, the overall holdings of whales increase up [sic] by 65,429 BTC.”
Clemente is also looking at the inflows and outflows of BTC on exchanges. The closely followed analyst uses Bollinger Bands – a volatility indicator that generates oversold or overbought signals – when examining the flow of BTC to and from crypto exchanges. Clemente says the indicator is flashing its first “buy” signal since March.
“Using Bollinger Bands, the signal looks at times that [sic] coins are either moved onto exchanges heavily or pulled off exchanges heavily. This just flashed the first ‘buy’ signal in over 3 months, giving you another way to see the trend reversal into accumulation.”
Supporting the other on-chain bullish signals, Clemente notes the behavior of the entities scooping up Bitcoin. According to his analysis, the entities buying up BTC have very little history of selling, indicating that a “supply shock” could be on the horizon.
“Entities that have a very low history of selling are continuing to absorb more coins from speculative traders, with the liquid supply ratio jumping. This force continues to grind upwards against price. Given no capitulation event, in my humble opinion, it is a matter of ‘when’ the re-accumulation process will be finished rather than ‘if.’ Once the process completes, the market would experience a supply shock.”
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The post Crypto Whales Accumulated $2,200,000,000 in Bitcoin This Week, Says On-Chain Analyst William Clemente appeared first on The Daily Hodl.
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Author: Daily Hodl Staff
