Bitcoin (BTC) bounced off $40,000 on Tuesday as attention returned to United States regulators.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
$45,000 target emerges for bulls
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $43,000 Tuesday ahead of fresh comments from Gary Gensler, chair of the Securities and Exchange Commission.
BTC price action steadied on the day after a fresh dip saw the first test of $40,000 support since Aug. 6.
While traders remained cautiously bullish on the outlook, the shadow of Evergrande, put off by a public holiday in China, still loomed large over sentiment.
“I am not too euphoric about this bounce,” popular trader Crypto Bullet summarized as part of his latest update.
“Surely it’s nice to see some strength by Bitcoin but over all it still looks bearish to me.”
He added that a $46,500 reclaim would be a deal-breaker to return to a bullish perspective, a requirement echoed elsewhere.
“Reclaiming 45k as support is bullish objective,” Filbfilb, an analyst at trading platform Decentrader, told subscribers of his Telegram channel on the day.
Meanwhile, Tuesday evening was scheduled to see Gensler, already in the spotlight over his comments on stablecoins, cement his position on cryptocurrency in an interview with The Washington Post.
Never mind the exchange reserves?
On the topic of China, analysts were adopting a longer-term approach, arguing that events such as the potential implosion of Evergrande were exactly the reason Bitcoin was created.
“Gentle reminder that BTC typically sells off in near term with global macro uncertainties...but the major issues brewing around the world right now are exactly what Bitcoin was built to protect us against,” fellow Decentrader analyst Philip Swift wrote this week.
Historical precedent buoyed the bull cause, with others noting that March 2020 delivered a springboard for new Bitcoin all-time highs after the initial collapse to $3,600.
As such, concerns such as exchange reserves rising on major exchange Binance were less of an issue.
“Yes, Binance’s BTC balance is increasing, suggesting selling from China. However, for context, this has been a several-week-long trend and overall exchange flows remain neutral over the last few days,” analyst William Clemente said as part of comments on the phenomenon.
Bitcoin exchange reserves comparative chart. Source: William Clemente/Twitter
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
This week could be explosive for ETH: Ethereum ETFs to debut in the US on Tuesday
![This week could be explosive for ETH: Ethereum ETFs to debut in the US on Tuesday](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ethereum/ethereum_XtraSmall.jpg)
Ethereum (ETH) is down nearly 1% on Monday as the Securities & Exchange Commission (SEC) confirmed via its website on Tuesday that it has given the final approval for spot ETH ETFs. Considering the ETH ETF launch and the upcoming Bitcoin Conference, this week could prove crucial for Ethereum.
SEC gives final approval for Ethereum ETFs to begin trading
![SEC gives final approval for Ethereum ETFs to begin trading](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/ethereum_4_XtraSmall.jpg)
The Securities and Exchange Commission (SEC) approved the S-1 registration statements of spot Ethereum ETF issuers on Monday, making it the second digital asset ETF to go live in the US, according to the latest filings on its website. The approval is also visible across the websites of the various asset managers that applied for the product.
Could Donald Trump and Elon Musk provide Bitcoin's bullish spark?
![Could Donald Trump and Elon Musk provide Bitcoin's bullish spark?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/btcusd_XtraSmall.jpg)
Trump could use Justice Department's 200,000 BTC as headstart for potential Bitcoin reserve, says analyst. Elon Musk hints at potential Bitcoin endorsement after US dollar value destruction post and laser eyes profile picture. The bearish crowd has remained silent since Bitcoin's two-week rebound.
Crypto investment products continue positive run after $1.35 billion net inflows
![Crypto investment products continue positive run after $1.35 billion net inflows](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
CoinShares' weekly report shows that crypto investment products saw a third consecutive week of inflows. Bitcoin saw inflows of $1.27 billion, with short-bitcoin recording more outflows. Ethereum-based products outperformed Solana on year-to-date inflows.
Bitcoin: Will BTC continue its bullish momentum?
![Bitcoin: Will BTC continue its bullish momentum?](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Bitcoin/bitcoin_XtraSmall.jpg)
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.