Widely followed on-chain analyst Will Clemente says Bitcoin (BTC) buy orders on crypto exchange Coinbase are reminiscent of BTC’s bottom in March 2020.
Clemente tells his 657,400 Twitter followers that BTC bulls on Coinbase have placed large buy orders from $17,000 and below.
According to the on-chain analyst, market participants’ eagerness to nab BTC at lower prices bodes well for the king of crypto.
“Bitcoin order book bids on Coinbase are stacked from $17,000 and below. Many people are hoping to buy BTC lower. The last time the order book was so skewed on the supply side was the rally from the March 2020 lows.”
In March 2020, Bitcoin crashed to around $3,700 before launching a massive rally that propelled BTC to $64,000 around a year later.
Clemente also has his eye on another metric that has marked Bitcoin’s highs and lows before. According to the on-chain analyst, the ratio of the total market cap of the two largest stablecoins to the total crypto market cap is also showing low signals.
“The USDC + USDT / Total Crypto Market Cap ratio continues to break out of the historical low area, respecting the channel boundaries… The general idea is that when the ratio is high and at the channel boundaries, a high percentage of stables [are available] to deploy relative to the crypto market capitalization. When [ratio is] low, there are many stables that have already been deployed.
Although on-chain signals appear to favor BTC bulls, Clemente warns that the macroeconomic data expected to be released today could derail Bitcoin’s rebound.
“Wednesday’s CPI (consumer price index) announcement dictates whether this risky bear market rally continues in the near term.”
The CPI is a widely followed measure of the rate of inflation in the United States. Said Clement,
“Inflation reverses = Fed can ease off. Inflation persists higher = Fed needs to keep its foot on the gas.
The US Federal Reserve has raised interest rates in an effort to fight inflation, a macro policy that has kept crypto markets down for the past few months.
At the time of writing, Bitcoin is trading hands for $22,838, down 3% on the day.
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