The exchange’s reserves are at a low point and that can hardly mean that this will push the Bitcoin price upwards, says an analyst. In addition, BTC has posted a higher low on the weekly chart, indicating a sign of recovery.
Analyst: An inevitable supply shock is coming
Bitcoin price briefly dropped to a low of $43,400 earlier this week, leading many analysts to expect that the largest crypto currency would soon start testing the $42,000 support again. Today, however, it appears that BTC bulls are stronger than expected. The Bitcoin price has risen by 3 percent in the past 24 hours, bringing the price back to around $46,000 today.
“This could be a macro-higher low for BTC. As long as we’re above $41,000 I’m bullish. The Bitcoin price often looks bad and surprises investors out of the blue,” said popular crypto trader Pentoshi.
Also crypto analyst Rack Capital tells that the BTC chart doesn’t look that bad at all. He is writing:
“Not only is #BTC still finding support here… But it has also formed a Higher Low at an early stage.”
So overall, most analysts are still fairly bullish.
Bitcoin exchange reserves are getting lower
Bitcoin exchange reserves are also extremely low, data confirms CryptoQuant. It even hit a new multi-year low this week.
This is a signal that more and more investors are holding their BTC tokens. It therefore seems inevitable that a severe supply shock will take place in which the price can rise sharply.
