With Bitcoin rallying up to over $45.7k at the time of writing, hitting its highest levels since mid-May, the crypto community is experiencing a bullish wave. Even the U.S. Infrastructure Bill that seeks to heavily tax cryptocurrency usage, hasn’t been able to deter this upward trajectory. This bullish sentiment was also reflected in the analysis by various experts, who are now optimistically waiting for it to reach the $50,000 mark.
Source: Twitter/TradingView
One pretty clear sign that several analysts were hoping was the king coin crossing over the resistance it had found repeatedly from 200-days Moving Average (MA), which sat at $45,000. A clean break above could now be expected and big players could consider this a buy-in sign, according to popular analyst Will Clemente.
In a recent podcast with Anthony Pompliano, the young analyst had opined that,
“I’ll be watching to see if we might take a pause or a little breather there (200-day MA) because that’s kind of a mark that a lot of people in traditional finance look at to see if an asset is in a bullish or bearish phase… I’ll be looking for that, but I’m targeting right now $49,000-$50,000 and seeing how we’re going to kind of react there. I think it will perhaps play out there over the coming weeks.”
Since the breakout, Clemente believed that the top coin was ready to hit the next milestone, which sits at $57k. Looking at the top/bottom models for the coin’s price movement, he tweeted,
Bitcoin looks ready to reclaim the yellow mid-line for bull run confirmation, which currently sits at $57K.
If confirmed, delta/top mean (orange) would be my next target at $92K.
If that level is then reclaimed, would be targeting top price model which currently sits at $175K. pic.twitter.com/5ddMwW4qOS
— Will Clemente (@WClementeIII) August 9, 2021
During the interview, Clemente did warn traders that the bullish momentum could only be sustained if long-term holders don’t dump their holdings or start “looking for exit liquidity.” According to data by Glassnode, long-term holders are in fact not liquidating their coins, which is “different to the 2018 bear market where old hands took exit liquidity on most relief rallies.”
Source: Twitter/Glassnode
However, one potential red flag on the king coin’s on-chain metrics was highlighted by the analyst, which could lead to a suspension of this relief rally. According to him, on-chain activity for Bitcoin is surprisingly low and a reversal of this trend would be paramount for the bullish momentum to sustain. He explained,
“This is kind of the one thing that is a red flag to me – we don’t have more on-chain activity in terms of when we look at the mempool or the number of transactions, active addresses, all these kinds of things, which I personally suspect are kind of lagging indicators… If we start to move back up, obviously you’re going to want to see this transaction activity come back in as well. I suspect it will, but you never know, and it’s just something to keep an eye on.”
