In an article I read the other day, it was mentioned that an analyst, who continues to build his followers with his on-chain signals, will soon announce the group of investors who bought the big Bitcoin fix. I am curiously watching when he will announce it.
Who sold bitcoins
In the latest episode of The Pomp Letter, Will Clemente says that a significant portion of BTC sold during Wednesday's crash, which saw Bitcoin drop from $43,500 to $30,000, came from short-term holders.
“By age, the situation I saw had the biggest increase in sales was cryptocurrencies from a week to a month ago.”
The on-chain analyst adds that the top selling assets that day were large Bitcoin whales dumping tens of thousands of BTC.
“By size, the cohort I saw selling the most was assets of 100,000 BTC or more. This group was reduced by 89,000 BTC on Wednesday.”
As for the buyers of the large BTC supply, Clemente emphasizes that a new species of whale has absorbed most of the selling pressure.
The cohort with the most purchases at the bottom were entities holding 10,000 -100,000 BTC. This cohort added a total of 122,588 BTC on Wednesday. Interesting note: There was a lot of buying from the West (US). I say this because at some point during the bounce, Coinbase It was trading on other exchanges at a premium of $3000. That means western buyers on Coinbase spammed the green button.
Currency flows have normalized since Wednesday and are no longer bearish. Over-the-counter (over-the-counter) table outlets at the bottom showed strong buying from high net worth/corporations.
Clemente also looks at Bitcoin's volume distribution before correcting. According to the on-chain analyst, the heavy volume distribution above $40,000 indicates that BTC is in the mid-term accumulation of the bull market.
“In the last two to three months, there was a ton of volume in the $40,000-60,000 range, specifically the $53,000-58,000 range. More than 25% of the supply totaled over $40,000… This is what the current in-chain volume distribution looks like. "
To compare with previous boom cycles, the on-chain analyst cites the weak volume distribution of BTC when the leading cryptocurrency peaked in 2017.
"This looked like it was at the peak of distribution in 2017."
The on-chain analyst also highlights that when Bitcoin peaked in 2013, the volume distribution also looked weak.
"This is what the distribution at the top of 2013 looked like."
According to Clemente, the current volume distribution does not remotely resemble previous bull market peaks. While the drop was unexpected, he continues to conclude that it is necessary to keep the bull market sustainable.
We have a big leverage reset and we're wiping out weak hands. At this point, it will take some time for these recently sold young coins to find a new home. Still bullish for the rest of the bull run. I don't think it will go up any time soon after this major fix. It will go on like this for a while. I advise investors to be careful.
Great article regarding Bitcoin, it lessened my queries about Bitcoin and its work.. Your article helped me alot