Blockware analyst shares quite compelling alpha graph of current state of crypto market
Despite the risk of severe economic turmoil and fairly negative sentiment just a week ago, the crypto market has managed to rally all the way back to the $1 trillion mark in total capitalization – where it was. more since June 13 – in the last capitulation to date. occurred. But although the crypto market capitalization has returned above this important psychological level, the market itself seems to be at a crossroads.
The fewer stabelcoins, the better
A graph presented by Blockware analyst Will Clemente can help us understand the nature of what is happening. The chart, which the analyst calls compelling, shows a pattern whereby when the share of stablecoins in the total market capitalization decreases, the Bitcoin price rises. On the contrary, when there are a large number of stablecoins deployed on the market, but no buyers left, Bitcoin’s price falls.
Clemente explains this pattern by saying that, in the first case, participants are forced to chase the rally up, while in the second case, on the contrary, a lack of buyers drives the price down. The logic of the graph is simple and obvious, but it is its graphical representation that is important and reflects well the model suggested by Clemente.
Reviewing the chart offered by Clemente, one can see that the market has “unraveled,” with the number of stablecoins declining in recent weeks, and Bitcoin, which is now in a small accumulation stage, standing at a crossroads. The current situation most closely resembles that of mid-2020 due to the chart, but it is worth considering the Corona Crisis at the time. However, if the pattern is correct, then in the near future, we can expect upward movement on Bitcoin.
