Explaining that Bitcoin (BTC) activity is slowing down, analyst William Clemente stated that on-chain data is highly positive. In the latest issue of weekly newsletters by Anthony Pompliano, Clemente stressed that there seems to be no reason for a drop in Bitcoin price this month.
50,000 new address entries every day
Even the most well-known price patterns that experts use in technical analysis of BTC price action do not indicate a bearish outlook for Bitcoin.
Clemente says that when he looks at the points to consider in the on-chain data, there is no data that indicates a decrease. He summarized, “Increasing user numbers are reaching all-time highs. More than 50,000 new assets are added to the chain daily.”
These new assets added to the network may be putting pressure on reserves on exchanges that continue the downtrend. Just last week, around 18,000 BTC were removed from exchanges.
In the data shared by the analyst, he shared the information that “Individual investors have been buying heavily for weeks, but we finally got the rise we expected in whales.”
“This week, 17 new whales were created on the blockchain. At the same time, the total holdings of whales increased by 65,429 BTC.”
As Cointelegraph reported, whales were already in the news this week for other reasons. A huge accumulation of short positions on the Bitfinex exchange caused the loss of $33,000, which was an important support in the BTC/USD pair. Broadly in contrast, Clemente sees the current activity as “an increase in positive whale activity”.
Don’t mind the decrease in block production speed
Another reason for optimism is decreasing premiums on the Grayscale Bitcoin Trust (GBTC). The hash rate has similarly dropped, but not as low as 83 exahash/s (EH/s) seen in the deepest drop in recent times. It only worries about transaction numbers.
“Overall on-chain activity, as indicated by the number of Bitcoin transactions, has decreased,” Clemente said.
However, even here, there is a point to be noted. “If I were to draw a bear scenario and choose a graph to describe it, I would choose on-chain activity. But part of this decline is due to people using the Bitcoin network less because of slower block generation,” he said.
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