Bitcoin (BTC) jumped $40,000 on Tuesday when interest returned to US regulators.
1 hour candlestick chart BTC/USD (Bitstamp). Source: TradingView
Bulls have a target of $45,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering around $43,000 on Tuesday ahead of new comments from Gary Gensler, Chairman of the Securities and Exchange Commission.
The impact of BTC price stabilized the next day as the fresh drop was the first test of the $40K support since August 6.
Although traders were cautiously optimistic about the outlook, the shadow of Evergrande, which was delayed by a holiday in China, was still ahead of the mood.
“I am not particularly excited about this comeback,” the popular Crypto Bullet trader summed up in his latest update.
“It’s nice to see some strength in Bitcoin, but overall it still looks bearish to me.”
He added that recovering $46,500 would be an obstacle to a return to an optimistic view, a claim that is reflected elsewhere.
“Getting 45,000 back in support is an optimistic goal,” Philbfilb, an analyst at trading platform Decentrader, told Telegram subscribers that day.
Meanwhile, on Tuesday night, Gensler, who was already at the center of his comments on cryptocurrency, was scheduled to see Gensler solidify his stance on cryptocurrency in an interview with The Washington Post.
Not to mention the foreign exchange reserves?
As for China, analysts have taken a long-term approach, claiming that events such as the possible explosion of Evergrande are precisely the reason for the creation of Bitcoin.
On the topic: “Best Bear Market Ever” – 5 Things to Watch for in Bitcoin This Week
“A mild reminder that bitcoin is usually sold off in the near future due to global macro uncertainty…but the major issues emerging around the world right now are exactly what bitcoin is built to protect us.” Decentrader co-analyst Philip Swift wrote this week.
Historical precedent supported the bullish case, and others pointed out that March 2020 was the starting point for new all-time highs for bitcoin after the initial crash of $3,600.
As such, concerns such as the rise in foreign exchange reserves on the big exchange Binance were less important.
“Yes, BTC balance on Binance is increasing, which means selling from China. However, this trend has continued for several weeks, and general coin flows have been neutral in recent days, says analyst William Clemente and comments on the phenomenon.