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Widely followed on-chain analyst Will Clemente expects the price of Bitcoin (BTC) to go up in the short term. By referring to a chart that he believes is currently the most captivating in crypto, he details the correlation between Bitcoin’s price and sidelined stablecoins.
Clemente tells his his 650k+ Twitter audience that the amount of sidelined Tether (USDT) and USD Coin (USDC) indicate that a new BTC upswing is imminent:
“In my opinion this is the most compelling chart in crypto:
When large amounts of stablecoins are on the sideline relative to crypto’s market cap, market participants have to chase the rally higher. When there’s a lot of stables deployed but no one left to buy, market runs out of new buyers.”
Furthermore, another important metric the analyst details is the 200-week moving (200WMA) average, which Bitcoin has finally reclaimed for the first time this month.
“BTC has reclaimed its 200WMA for the first time in a month.
Keep in mind still 5 days until this weekly candle closes, but so far so good.”
Historically, hovering over the 200WMA average has proven to be positive for the BTC price. Clemente explains the flagship cryptocurrency has previously surged on multiple occasions after experiencing a similar dip:
“Bitcoin has only been this far below its 200-day moving average a handful of times (<2%), each of which looked terrifying to buy at the moment, but terrifyingly obvious in hindsight.”
At the time of writing, Bitcoin is moving hands at $23,056, having gained over 18% in the last seven days according to CoinMarketCap data.