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


    Bitcoin (BTC) preserved a higher low overnight on Tuesday 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 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.

    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 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.

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