Barry Silbert, founder of Digital Currency Group, described $100,000 as a magnet for Bitcoin (BTC). There are also tweets by Silbert targeting $20,000 while BTC spends time at $4,000. With current data, Will Clemente’s on-chain analysis and Barry Silbert’s predictions are as follows…
Barry Silbert: 100k dollars is a magnet
Barry Silbert, founder of Digital Currency Group, the parent company of Grayscale, again took to Twitter to explain his Bitcoin (BTC) forecast. Silbert is known for his accurate predictions. In his August 15 tweet, he identified $100,000 as a magnet for BTC, while two years (2019) ago, on June 22, he posted a similar tweet for $20,000. Silbert’s predictions were as follows:
His first tweet was “20. 000 dollar magnet” came when Bitcoin (BTC) was trading at $4,023. 10 months ago, in December 2017, BTC tested $20,000 for the first time. Then, in 2021, Bitcoin registered new ATH at $64,863. After this peak reached in April, Tesla’s suspension of BTC payments due to its environmental friendliness and China’s pressure on BTC miners negatively affected the price and ended with multiple tests of the $ 30,000 level. Now, for BTC trading at $46,000, Cryptocoin. com, we take a look at the on-chain metrics of Will Clemente, whose analysis we share. According to the analyst, Bitcoin seems to be preparing for a rally above $ 47,000.
Will Clemente states that whales are accumulating Bitcoin
Prominent on-chain analyst Will Clemente thinks the rally is strengthening as Bitcoin climbs above $47,000. Explaining that whales or wallets holding more than 1,000 BTC have accumulated over $5 billion in Bitcoin (BTC) sonically over the past few weeks, Clemente revealed the following on-chain data:
One of the most interesting developments in the last 1-2 weeks has been the increase in assets (forensically clustered addresses) holding more than 1,000 BTC (i.e. whales)… Since July 27, whales have added 107,150 BTC to their holdings.
The analyst also evaluated the possibility of Bitcoin performing a rally at $47,000 or a bull trap. Clemente notes that according to on-chain metrics, when Bitcoin registered an LH of $17,000 in December and January 2017, no 2018 bounce-like behavior was observed. Here are their analysis, where the analyst evaluated the possibilities of a dead cat or rally:
During the 2017 dead cat (the scenario most people rely on this framework), there were huge sales from wallets that hadn’t moved their BTC in at least 6 months. They took the exit liquidity at the first opportunity. We actually don’t see the same behavior at the moment, invalidating the dead cat bounce narrative from a chained perspective so far. Long-term holders are sitting tight and standing strong right now.
Clemente also looks at funding rates and leverage to determine if investors are speculating heavily on Bitcoin (BTC) derivatives and futures markets. Funding and leverage ratios are currently low, suggesting that the increase is likely due to organic buying and selling in the spot markets. Clemente’s statements that he found the rally more likely were as follows:
Funding is very low compared to where it was at the same price levels in February, suggesting that this rally is much healthier and more spot-focused than derivatives. Leverage is relatively low compared to when BTC was at the same price levels in February. It was healthy to show this rally again.
Finally, while Clemente says he sees a bullish signal in his on-chain analysis, he highlights a lagging metric that could be seen as a red flag:
Finally, to filter out the noise, we have the transaction count adjusted for the transaction between cryptocurrencies. I see a slow recovery on this, but I would like to see more follow up with higher prices.