Categories: Cryptocurrencies

BTC price nears $46K with Bitcoin exchange reserves lower than November 2020

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.

https://twitter.com/rektcapital/status/1437693554839654402?ref_src=twsrc%5Etfw

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

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