Bitcoin Demand Stacked on Coinbase, Flashes in March 2020, According to Popular On-Chain Analyst
Popular on-chain analyst Will Clemente says Bitcoin (BTC) buy orders on crypto exchange Coinbase are reminiscent of BTC’s March 2020 bottom.
Clemente tells his 657,400 Twitter followers that BTC bulls have placed big buy orders of $17,000 and below on Coinbase.
Market participants’ eagerness to catch BTC at lower prices bodes well for king crypto, according to the on-chain analyst.
“Bids in Bitcoin order book on Coinbase are stacked from $17,000 and below. Many people are hoping to buy BTC lower. The last time the order book was so heavily skewed to the bid side was the uptrend from the March 2020 lows.”
Source: Will Clemente/Twitter
In March 2020, Bitcoin crashed to around $3,700 before embarking on a massive rally that propelled BTC to $64,000 about a year later.
Clemente is also eyeing another metric that has previously marked Bitcoin’s ups and downs. According to the on-chain analyst, the ratio between the total market cap of the two largest stablecoins and the total crypto market cap is also showing blinking bottom signals.
“The USDC+USDT market cap/total crypto market cap ratio continues to roll off the historical bottom area and respects the channel boundaries… The general idea is that when the ratio is high and at the channel boundaries, a large percentage of stables [are available] relative to the crypto market cap. When [ratio is] low, there are many stables that have already been deployed.”
Although on-chain signals seem to favor BTC bulls, Clemente warns that macroeconomic data, due to be released today, could derail Bitcoin’s rally.
“Wednesday’s CPI (Consumer Price Index) announcement will dictate whether this risky bear market rally will hold in the near term.”
The CPI is a widely used measure of the US inflation rate. Says Clemens
“Inflation overrun = Fed can slow down. Inflation stays higher = Fed needs to step on the gas.”
The US Federal Reserve has hiked interest rates to fight inflation, a macroeconomic policy that has kept crypto markets bearish over the past few months.
At the time of writing, Bitcoin is exchanging hands for $22,838, down 3% on the day.
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