Bitcoin (BTC) on-chain activity is "dead" but on-chain indicators are overwhelmingly positive right now, says analyst William Clemente.
In the latest edition of Anthony Pompliano's weekly newsletters, Clemente highlighted multiple metrics showing no reason to be bearish about Bitcoin this month.
50,000 new Bitcoin entities every day
With BTC price action failing to impress, there is no shortage of bearish outlooks on Bitcoin, with even its best-known price models coming in for criticism.
If on-chain data is anything to go by, Clemente argues, the situation is far from bearish.
"The growth of new users is now reaching new all-time highs, over 50,000 new entities coming on-chain a day," he summarized.
Those new entities could well be putting pressure on exchange reserves, which have resumed their downtrend — in the past week alone, almost 18,000 BTC has left exchange wallets.
"Retail has been buying heavily for weeks now, but we finally got the uptick in whales that we were waiting for," the newsletter continued.
"There were 17 new whales birthed on the blockchain this week, while at the same time the overall holdings of whales increase up by 65,429 BTC."
As Cointelegraph reported, whales have already been in the news for other reasons this week, with one giant build-up of short positions on exchange Bitfinex instigating a price dip which lost BTC/USD important $33,000 support.
More broadly, by contrast, Clemente views current activity as an "uptick in positive whale activity."
Never mind slow block times
Elsewhere, cause for optimism comes from a diminishing premium on the Grayscale Bitcoin Trust (GBTC) despite the impending unlocking events.
Hash rate has likewise not returned to challenge recent lows of 83 exahashes per second (EH/s), leaving only transaction numbers to worry about.
"Overall, on-chain activity is dead, shown by the number of Bitcoin transactions," Clemente acknowledged.
Even here, however, there is a caveat.
"If I had to build up a bear case and challenge my own opinion this is one of the charts I would use; however, a portion of this drawdown is likely from people using the Bitcoin network less due to slower block times," he reasoned.