Here’s the most compelling chart in all of crypto, according to Top On-Chain analyst Will Clemente
Closely followed chain analyst Will Clemente says he has found the most compelling chart in crypto.
The analyst stock a chart with his 652,600 Twitter followers showing the movement of Bitcoin (BTC) market cap versus the number of sidelined Tether (USDT) and USD Coin (USDC).
Clemente’s chart appears to show a correlation between the movement of Bitcoin’s price and stablecoins on the sidelines. At the time of writing, the amount of sidelined stablecoins suggests that the price of BTC is likely to go up, according to the chart.
“In my opinion, this is the most compelling chart in crypto:
When large amounts of stablecoins are sidelined in relation to crypto’s market cap, market participants must chase the rally higher. When there are many stables deployed, but no one left to buy, the market runs out of new buyers.”
The analyst too points out BTC has regained the crucial 200-week moving average (200WMA) for the first time in July, which could bode well for the top crypto asset by market cap.
“BTC has regained its 200WMA for the first time in a month.
Remember still 5 days until this weekly candle closes, but so far so good.”
Clement then sier BTC has a history of falling behind the 200WMA very briefly before the king crypt comes roaring back eventually.
“Bitcoin has only been this far below its 200-day moving average a handful of times (<2%), each of which looked terrifying to buy in the moment but terrifyingly obvious in hindsight."
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Featured image: Shutterstock/Neliyana Kostadinova/Andy Chipus
