Bitcoin Bullish Even Without External Stimuli—Will Clemente
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That said, Will Clemente, a popular on-chain analyst, recently highlighted some significantly bullish indicators for Bitcoin’s near-term prospects.
In this week’s edition of the Blockware Solutions’ Intelligence newsletter, Clemente revealed that from an on-chain perspective, the benchmark cryptocurrency has not shown many changes over the past few weeks. He explained that Bitcoin volume movement clustered around $36K to $45K, adding that 20% of its money supply has hovered around that area, indicating that market premiums have persisted.
The analyst noted that a metric that serves as a “risk-free” yield indicator for the crypto suggests that the market needs a major external stimulus, like a behemoth corporation announcing a BTC purchase, to spark momentum.
However, Clemente noted that the market has some potential to post a solid rebound without the influence of external stimulus, explaining that there has been a notable increase in illiquid supply accentuated by the dwindling BTC exchange supply.
Clemente also pointed out that most of this exchange outflow occurred in behemoth crypto Coinbase as long-term holders (LTH), wallets unlikely to sell, continue to accumulate more coins.
Key Bitcoin Levels to Watch — March 20
BTC has reacted aggressively over the last 24 hours after testing the 100 EMA on the daily timeframe. The benchmark cryptocurrency might not have enough fuel to push through the $42.4K ceiling, where the EMA rests.
The cryptocurrency has dropped to the $41.5K area today following the rejection. That said, the $42.4K is now the critical level to break in the near term to perfect a push into the $45K – $46K axis before the month runs out. In the meantime, I do not expect the current correction to extend beyond the $41K support, where I expect more buyers to come on board and drive a retest and possible break of the 100 EMA over the coming days.
Meanwhile, my resistance levels are at $42,000, $42,400, and $43,000, and my key support levels are at $41,000, $40,000, and $39,000.
Total Market Capitalization: $1.86 trillion
Bitcoin Market Capitalization: $787.2 billion
Bitcoin Dominance: 42.2%
Market Rank: #1
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