Here’s Why the Current Bitcoin Correction Is Different From BTC’s Collapse in May: On-Chain Analyst Will Clemente

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. 

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Featured Image: Shutterstock/Mia Stendal/Chuenmanuse

The post Here’s Why the Current Bitcoin Correction Is Different From BTC’s Collapse in May: On-Chain Analyst Will Clemente appeared first on The Daily Hodl.