On-chain Analyst Predicts Bitcoin Price Reversal in Coming Weeks
Widely-followed on-chain crypto analyst Will Clemente says that multiple on-chain metrics suggest that Bitcoin is ready for a reversal.
The analyst tweets to his 126K Twitter followers that Bitcoin Perpetual Futures funding has been negative recently, which according to him is a bullish signal.
Funding has now been negative for 11 days straight.
“Funding has now been negative for 11 days straight. Translation: Shorts are paying longs to keep their positions open.
According to Clemente, Prolonged high funding is Bearish signal, while Prolonged negative funding is a Bullish signal.
Last week the analyst published a blog post which pointed out that Bitcoin’s liquid supply ratio indicated there’s been rotation of the largest cryptocurrency from weak to strong hands.
“There is a clear bullish divergence in the ratio, with a lower low made in price and a higher high in the ratio.
AKA strong hands are increasingly buying as price is going down.”
Clemente points out that SOPR (Spent Output Profit Ratio), which tells us the levels of the amount of realized profit for all coins moved on-chain.
“Once again we have a higher low in the ratio while there’s a lower low in price.
Last time there was a bull div this clear was in late January, when price went on a strong rally following.”
The take out from all this is that according to the analyst, these metrics indicate Bitcoin’s price could see a reversal in the next few weeks.
