True, Bitcoin managed to rise above $ 35,000 over the weekend. However, the bulls could not maintain the momentum: overnight BTC faced losses again and now trades at $ 34,240-down 3.68% over the past 24 hours. However, a popular on-chain analyst emphasizes: Bitcoin is currently being bought heavily-and a so-called supply shock is developing in parallel. What does this mean – and what’s next for BTC?

Whales accumulate BTC

On-chain analyst Will Clemente is sure: Bitcoin is currently intensively accumulated. He considers the current situation in the markets bullish. Clemente explains to his more than 129,000 Twitter followers: Bitcoin is on the verge of a so-called supply shock. Accordingly, there is less and less BTC – at the same time, the financial expert emphasizes: More and more so-called whales buy BTC. Whales are industry participants with more than 1,000 BTC. Clemente:

“Bitcoin is now in heavy accumulation. Supply shock develops. There was a clear bull divergence on strong hand purchases vs price, but look at this big spike printed last night. This force presses on the price.”

And:

“And look at this spike in whales.

Whales added 64,137 BTC to their holdings yesterday.”

At the same time, Clemente said, the amount of Bitcoin stored on crypto exchanges has dropped in the last seven days-by more than 24,000 BTC. analyst:

“Stocks of exchanges have fallen by -24.259 BTC in the last week. The trend is now sideways, bullish.“

His conclusion: He is bullish on Bitcoin in the medium term and its evolution over the next few months.

PLANB’s “Worst Case” Bitcoin Forecast

Will Clemente is not alone with his bullish attitude: Even top analyst Willy Woo, Three Arrows founder Su Zhu or the pseudonymous analyst PlanB currently assume that BTC is in a bull market. PlanB, inventor of the legendary Bitcoin Stock-To-Flow price prediction model, expects positive price action on BTC in the coming months. However, he also revealed his worst-case scenario for Bitcoin.

PlanB still expects weak price action in June and possibly also in July. For July, for example, he thinks it is possible that Bitcoin will again hit lows at $ 28,000 medical attention. After that, ideally (“best case scenario”), he expects a massive upswing: by the end of December, BTC could reach a price of $ 450,000.

“My on-chain data (color overlay in the chart below) tells me that this bull run is not over yet and 64K was not the peak. This is consistent with the s2f(x) model. Also my floor indicator (not s2f based) says we won’t close below 47k in Aug.”

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Last updated on July 5, 2021

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