Popular analyst Will Clemente believes that Bitcoin could trend higher in the coming months as on-chain data flash bullish signals.

The prominent on-chain strategist tells his 209,100 followers that he’s closely watching Bitcoin’s illiquid supply relevant strength indicator (RSI). The indicator follows the momentum of Bitcoin accumulation by running the 365-day stochastic RSI over the 30-day net change of BTC illiquid supply.

 

“This wave of Bitcoin supply shock has the most momentum of any in recent history. We’re going much higher over the coming months.”

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Source: Will Clemente/Twitter

According to Clemente’s chart, Bitcoin tends to ignite a parabolic ascent every time the metric travels from the bottom to the top of the range, or the area where a BTC supply-side crisis could be in play. It happened in the second half of 2020, in the first half of 2019 and the latter half of 2017.

Should Bitcoin ignite a rally, Clemente highlights that $48,000 could act as a tough on-chain resistance. Above that, the next on-chain resistance stands at $55,000.

“Air between $50,000 and $54,000. Blue skies above $60,000.”

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Source: Will Clemente/Twitter

On July 5th, when BTC was trading around $33,000, Clemente predicted that a BTC supply shock could push prices higher. The value of BTC has surged over 40% since, with Bitcoin now trading around $47,000.

Clemente also previously said that this cycle could be different from all other bull markets as long-term holders, or BTC owners who have kept their coins dormant for at least five months, are accumulating at a rapid rate.

“Structurally, this time actually is different. Long-term Bitcoin holders set the floor.”

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Source: Will Clemente/Twitter

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The post Bitcoin Is Going ‘Much Higher’ in Coming Months, Predicts On-Chain Analyst Will Clemente appeared first on The Daily Hodl.