On-chain analyst Will Clemente says retail traders are buying BTC – but can’t mount a sustainable rally on their own.
Clemente is breaking down the notion that retail buyers caused the 50% sell-off in Bitcoin’s price.
According to the analyst, retail holders have actually been adding to their positions aggressively while whales are doing the selling.
“It’s been widely believed that retail is to blame for Bitcoin’s price drop.
However, the data shows this is not the case. Retail (entities with 0.001BTC to 1BTC) has been aggressively adding to their holdings.”
Clemente says the evidence points to entities with deep pockets who are selling Bitcoin behind the scenes.
“It actually seems like most selling has come from whales (entities with >1K BTC), as the number of whales on-chain has continued to trend down.”
Clemente stresses the importance of large players coming into the crypto space.
“Although this is good for adoption, it shows that retail cannot sustain Bitcoin as a trillion-dollar asset, and I suspect if there’s going to be any continuation of this bull run, we’re going to need to see at least a jolt in new whales coming on the network.”
Despite a bearish June, Clemente sees a reversal around the corner for Bitcoin. He shares a chart from fellow on-chain analyst Willy Woo showing that strong hands are taking advantage of the dips.
“In my opinion, this chart is the easiest way to visualize what’s taken place over the last month under the hood. Strong hands have added increasingly through recent price decline, now offsetting selling from weak hands. Now we wait for reaccumulation to complete – seller exhaustion.”
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The post On-Chain Analyst Says Current Group of Bitcoin Buyers Can’t Sustain Trillion-Dollar Asset Alone appeared first on The Daily Hodl.
source https://dailyhodl.com/2021/07/02/on-chain-analyst-says-current-group-of-bitcoin-buyers-cant-sustain-trillion-dollar-asset-alone/