Will Clemente believes Bitcoin is giving bullish signals and is underweight now
Expert cryptoanalyst makes several arguments for Bitcoin growth
Renowned crypto enthusiast and analyst Will Clemente submit an assignment that the main cryptocurrency is currently undervalued by the market. In favor of his statement, the expert made a number of interesting arguments.
Clemente pointed to the successful review of backwardation and the negative funding of BTC futures contracts on cryptocurrency exchanges. Moreover, Bitcoin is starting to build dominance again, as the index hit its lowest value since 2018, bouncing back to around 40% at one point. The analyst also pointed to a number of bullish signals, citing the state of divergences and on-chain metrics as evidence.
Think the market is underweight BTC
– Several weeks of open interest with negative financing and repayment swallowed up in 1 candle
– Successful test of demand in Coinbase order book
– BTC dominance rejects 2018 support
– Raw materials roll over, CPI probably lower than expected pic.twitter.com/pisef1hiND
— Will Clemente (@WClementeIII) 10 September 2022
Clemente’s opinion about the more volatile signals is the most interesting. Positive statements from managers of major cryptocurrency sites as well as increased circulation of Bitcoin obituaries in the crypto space clearly indicate that the market has bottomed out, the expert believes.
Nevertheless, possible doubts still have a place on the issue of the US monetary policy and especially the Fed’s fight against inflation, which directly affects the quotation of cryptocurrencies. According to the analyst on this question, it is worth waiting for a decrease in inflation after the series of aggressive interest rate increases from the regulator.
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But, as usual with the Fed, its actions and rhetoric could bring a number of surprises, given the volatile macro and geopolitical backdrop in the world.
Bitcoin (BTC) Price Review
For now, Bitcoin has managed to move beyond the important price level of $21,500. If the price holds until the opening of the US stock market, with the S&P 500 continuing to move to $4,100, a rally can be expected. Otherwise, if the index goes into a correction, Bitcoin will likely go after it. The support levels at the moment are the $20,800-$21,000, $20,500-$20,000 blocks.
There is also speculation in the crypto space that Bitcoin’s weak rise was triggered by a recent interview with Britain’s King, Charles III, who is surprisingly knowledgeable about blockchain and the technology associated with it.
