Bitcoin News

Bitcoin (BTC) preserved a higher low overnight on Sept. 14 in what one analyst believes may lead to sustained recovery.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

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 sh*t and then surprising everyone.”

Pentoshi had stayed cautious on Monday, in line with expectations from analysts which demanded a daily higher low to preserve overall market strength.

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.”

Bitcoin exchange reserves chart. Source: CryptoQuant

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 ten 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.

Largest altcoin Ether (ETH) was recovering, passing $3,300 while still down 14% compared to the same time a week ago.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

Products You May Like

Articles You May Like

Grandpa Secret Tokens Crypto in Medicine
Ep. 55 Best Practices for Borrowing Against Your Bitcoin
Smart contracts are coming to Bitcoin through Dfinity’s Internet Computer
Introducing MetaWars, A Strategic Blockchain-Based Game in the Metaverse – The Daily Hodl
One River Digital raises $41M from Goldman Sachs and Coinbase
Recent Analysis Compares Waste From One Bitcoin Transaction To Throwing Out Two iPhones

Leave a Reply

Your email address will not be published. Required fields are marked *