Bitcoin (BTC), which saw a $40,000 drop on Tuesday, was reaffirmed by regulators in the United States.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
$45,000 target emerges for bulls
Cointelegraph Markets Pro and TradingView data showed that BTC/USD was at $43,000 Tuesday, ahead of new comments by Gary Gensler (chair of the Securities and Exchange Commission).
The BTC price action stabilized after a fresh dip that saw the first test for $40,000 support since August 6.
Although traders were cautiously optimistic about the outlook, Evergrande, a Chinese public holiday, still loomed large.
Crypto Bullet, a popular trader, stated that he is not overly excited about the bounce in his most recent update.
“Its great to see Bitcoin gain strength, but overall it looks bearish to my eyes.”
He said that a $46,500 reclaim would make it impossible to return to bullish perspectives, which is a requirement repeated elsewhere.
Filbfilb, an analyst for trading platform Decentrader said that “Reclaiming 45k support is bullish objective”. He told Telegram subscribers on the day.
Gensler was due to appear in The Washington Post interview on Tuesday night. He is already under fire for his comments about stablecoins.
Do you forget about the currency reserves?
Analysts were arguing for a longer-term view on China. They argued that events like the implosion Evergrande could have been the reason Bitcoin was born.
Related: “Best Bear Market Ever” — 5 Things to Watch in Bitcoin This Week
Philip Swift, a Decentrader analyst, wrote this week: “Remember that BTC tends to sell off in the near term due to global macro uncertainties…but these major issues brewing all around the globe right now are precisely what Bitcoin was designed to protect against.”
The bulls were buoyed by historical precedent. Others noted that March 2020 was a launchpad for new Bitcoin all time highs following the initial collapse to $3,000.
Concerns about exchange reserves increasing on the major exchange Binance are therefore less important.
Binances BTC balance has been increasing which suggests that China is selling. For context, however, this has been an ongoing trend for several weeks and overall exchange flows have remained neutral over the past few days,” William Clemente, analyst, stated in comments about the phenomenon.
Bitcoin exchange reserves comparative chart. Source: William Clemente/Twitter