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Is Bitcoin Making a Head Fake? On-chain analyst Will Clemente looks at the strength of the BTC surge to $ 47,000

Prominent on-chain analyst Will Clemente pays tribute to the strength of the Bitcoin rally as the leading cryptocurrency surges above $ 47,000.

In a new edition of Clemente’s newsletter, the on-chain analyst says that crypto whales, or units holding over 1,000 BTC, have amassed massive Bitcoin (BTC) worth over $ 5 billion in the past few weeks.

“One of the most interesting developments in the past 1-2 weeks has been the increase in company holdings (forensically clustered addresses) over 1,000 BTC (aka whales) … As of July 27, whales have added 107,150 BTC to their holdings.”

Source: Will Clemente

Clemente is also investigating long-term owner activity to determine if Bitcoin’s $ 47,000 rally is a bull trap or a dead hop.

According to the on-chain analyst, the investor cohort is not showing any behavior similar to the December 2017-January 2018 rally, when Bitcoin printed a lower high at $ 17,000.

“During the dead cat 2017 (the scenario that many seem to be basing this framework on) there was a massive sell-off of market participants who hadn’t moved their coins for at least 6 months. They took exit liquidity at the first opportunity they came across.

In fact, we don’t see the same behavior right now, which so far invalidates the dead cat leap narrative from an on-chain perspective. Long-term owners are currently stuck and holding on to strong. “

Source: Will Clemente

The on-chain analyst also examines the funding rates and leverage ratio to potentially determine whether or not traders are speculating heavily on Bitcoin derivatives and futures markets.

Funding rates and leverage ratio are currently low, according to Clemente, suggesting that the rally may be driven by organic buying and selling in the spot markets.

“The fact that funding is so low compared to the same price level in February shows that this rally is much healthier and spot based rather than derivatives. Leverage is also relatively low compared to when BTC was at the same price level in February. Showing this rally again was healthy. “

Source: Will Clemente

Although Clemente says he’s seeing bullish on-chain signals, he does highlight an unforgiving metric that could be viewed as a red flag.

“Lastly, we have the number of transactions that have been adjusted for movement between companies in order to filter out noise. [I’m] I see a slow shredding here, but would like to pull through more with higher prices. “

Source: Will ClementeDon’t Miss A Beat – Subscribe to crypto email notifications straight to your inbox

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