Bitcoin Is Ripe for a Reversal, Says On-Chain Analyst Will Clemente – Here’s When
Several metrics indicate Bitcoin is ripe for a reversal, according to on-chain crypto analyst Will Clemente.
Clemente tells his 126,400 Twitter followers that Bitcoin Perpetual Futures funding has been negative recently, which he says is a bullish signal.
“Funding has now been negative for 11 days straight. Translation: Shorts are paying longs to keep their positions open. As a rule of thumb, for anyone not familiar with how funding works:
Prolonged high funding = Bearish
Prolonged negative funding = Bullish”
Last week, Clemente penned a blog post noting that Bitcoin’s liquid supply ratio indicated there’s been rotation of BTC 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.”
The analyst also highlights SOPR (Spent Output Profit Ratio), which measures 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.”
As for the timing of his prediction, Clemente says these metrics indicate Bitcoin’s price could see a reversal in the next few weeks.