Prominent analyst Will Clemente is looking at the on-chain data of Bitcoin to see whether the BTC market is undergoing a major shift in trend.
In a new installment of the Blockware Intelligence newsletter, Clemente says that Bitcoin’s abrupt drop wiped out billions of dollars worth of leveraged positions.
“As one trader’s forced liquidation sale triggered the next trader’s stop-loss, roughly $1.23 billion of longs got liquidated, $622 million of which came from ByBit… In total, roughly $4.4 billion of perpetual futures open interest was wiped.”
Source: Will Clemente
According to Clemente, the drawdown that saw Bitcoin plunge from its 30-day high of $52,853 to a low of $43,285 is a much-needed breather to keep BTC’s uptrend sustainable.
“I view this as a healthy cleansing, especially when you get a view of how investors acted throughout the event.”
To support his long-term bullish bias on BTC, Clemente says the plummet gave investors the opportunity to buy over $1