BTC price nears $46K with Bitcoin exchange reserves lower than November 2020
It’s a question of “if,” not “when,” for Bitcoin to see a supply shock that squeezes price action upward, one analyst forecasts.
Bitcoin (BTC) preserved a higher low overnight on Tuesday in what one analyst believes may lead to sustained recovery.
Analyst: Time for “inevitable” Bitcoin supply shock
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising to rechallenge $46,000 Tuesday.
The pair had been drifting south before a sudden bout of volatility produced lows of $43,380 on Bitstamp. At the time of writing, these remained untested, with Bitcoin gaining around 5.5%.
“This could be a macro HL for $BTC. It acted as support before,” popular trader Pentoshi summarized about the area immediately below around $45,300.
“We took out the HL from the Macro down trend then climbed w/o any notable pullbacks for weeks. As long as we are above 41k we are bull. Btc has a way of looking shit and then surprising everyone.”
Pentoshi had stayed cautious on Monday, in line with expectations from analysts who demanded a daily higher low to preserve overall market strength.
Not only is #BTC still finding support here…
But it has also formed an early-stage Higher Low$BTC #Crypto #Bitcoin https://t.co/thtalKabfm pic.twitter.com/fBPbCPT7BH
— Rekt Capital (@rektcapital) September 14, 2021
Overall, however, there remained plenty to be bullish about longer term.
“Bitcoin exchange reserves are getting to very low levels. That’s a signal that we’ve got more and more holders,” Cointelegraph contributor Michaël van de Poppe noted.
“The inevitable is still about to happen -> heavy supply shock upwards in which we’ll get a big run to higher numbers.”
Data from on-chain analytics firm CryptoQuant confirmed that exchange reserves hit new multi-year lows this week, even beating the start of the main bull run phase in November 2020.
Altcoins rise in line with strengthening Bitcoin
Altcoins also painted a more positive picture Tuesday, with all of the top 10 cryptocurrencies seeing at least 3% gains.
Related: Bearish pennant breakdown confirmed? 5 things to watch in Bitcoin this week
They were led by Solana (SOL) and Polkadot (DOT), which both saw closer to 10% returns.
The largest altcoin, Ether (ETH), was recovering, passing $3,300 while still down 14% compared to the same time a week ago.
