Bitcoin (BTC) preserved a higher overnight low on Tuesday, one analyst believes this could lead to a sustained rally.
“This could be an HL macro for $BTC. It acted as support before,” summarized the popular Pentoshi trader about the area just below about $45.300.
“We took the HL out of the Macro's downtrend and climbed without any notable declines for weeks. As long as we're above 41k, we're bulls. Btc has a way of looking like shit and then surprising everyone. ”
Pentoshi remained cautious on Monday, in line with analyst expectations calling for a higher daily low to preserve overall market strength.
not only is #BTC still finding support here…
But it has also formed an early-stage Higher Low$ BTC #Crypto # Bitcoin https://t.co/thtalKabfm pic.twitter.com/fBPbCPT7BH
- Rekt Capital (@rektcapital) September 14, 2021
Overall, however, there was a lot to be optimistic about in the long run.
“Bitcoin foreign exchange reserves are reaching very low levels. That's a sign that we have more and more buyers,” contributor Michaël van de Poppe noted.
"The inevitable is yet to happen -> strong upward supply shock, in which we will have a big rush to higher numbers."
Data from on-chain analyst firm CryptoQuant confirmed that foreign exchange reserves hit new multi-year lows this week, even beating the start of the main bullfighting phase in November 2020.