Bitcoin saw a setback after the holidays, losing almost 4% in value over the past day. This latest dip briefly dragged its price under $95.2k on Thursday. In fact, following multiple corrections since mid-December, Bitcoin has nearly wiped out its monthly gain.
However, data suggests there could be room for more upward movement.
CryptoQuant’s latest analysis reveals that Binance’s Bitcoin reserves have dropped to their lowest levels since the beginning of 2024. This decline notably began in August and mirrors a similar trend observed in January, when reserves also hit a low, a moment that preceded a 90% rally in BTC’s price.
This milestone coincides with Bitcoin reaching an all-time high of around $108,000. The diminishing reserves on Binance indicate that investors are growing increasingly confident in Bitcoin’s long-term potential, choosing to withdraw their holdings rather than keeping them on the exchange for short-term selling.
Historically, such periods of withdrawal have often been associated with the buildup of positive market momentum.
Meanwhile, CryptoQuant data also revealed a surge in Bitcoin demand, as over-the-counter (OTC) desks reported their largest monthly inventory decline of 2024, with a reduction of 26,000 BTC. Since November 20, the total balance held by these desks has dropped by 40,000 BTC, which is evidence of a tightening of supply.
This decline in available inventory suggests that demand is increasing, thereby contributing to a building market momentum. The ongoing withdrawal of Bitcoin from OTC desks indicates growing confidence in the asset, which, in turn, could potentially set the stage for the next leg up as the supply becomes more constrained.
While Bitcoin may have been trading below $100,000 for almost a week now, experts suggest that it is poised for a major move. One crypto analyst under the pseudonym “xoom” said that the crypto asset’s trajectory shows a bullish setup despite a lack of a Christmas rally. As per their analysis, the market is displaying a bullish engulfing candle with rising volume, emerging from the lows of a megaphone pattern.
This type of pattern often signals an imminent breakout. If the pattern plays out, the analyst predicts a potential price range of $110k-$130k by the end of January, with $120k as a realistic target. While volatility and a brief dip to shake out weaker hands are possible, any pullback is expected to be short-lived, with the overall trend pointing upward.
The analyst also sees the potential for Bitcoin to reach $135k–$140k or higher in the coming months. With such developments on the horizon, the analyst believes now is not the time to stay on the sidelines, as the next move could spark the beginning of a significant rally.
The post Binance Bitcoin Reserves Hit Lowest Level in 2024, Possible Indicator of Bullish Reversal appeared first on CryptoPotato.
However, data suggests there could be room for more upward movement.
Declining Binance Reserves
CryptoQuant’s latest analysis reveals that Binance’s Bitcoin reserves have dropped to their lowest levels since the beginning of 2024. This decline notably began in August and mirrors a similar trend observed in January, when reserves also hit a low, a moment that preceded a 90% rally in BTC’s price.
This milestone coincides with Bitcoin reaching an all-time high of around $108,000. The diminishing reserves on Binance indicate that investors are growing increasingly confident in Bitcoin’s long-term potential, choosing to withdraw their holdings rather than keeping them on the exchange for short-term selling.
Historically, such periods of withdrawal have often been associated with the buildup of positive market momentum.
Meanwhile, CryptoQuant data also revealed a surge in Bitcoin demand, as over-the-counter (OTC) desks reported their largest monthly inventory decline of 2024, with a reduction of 26,000 BTC. Since November 20, the total balance held by these desks has dropped by 40,000 BTC, which is evidence of a tightening of supply.
This decline in available inventory suggests that demand is increasing, thereby contributing to a building market momentum. The ongoing withdrawal of Bitcoin from OTC desks indicates growing confidence in the asset, which, in turn, could potentially set the stage for the next leg up as the supply becomes more constrained.
Bitcoin: $120k A Realistic Target for Jan
While Bitcoin may have been trading below $100,000 for almost a week now, experts suggest that it is poised for a major move. One crypto analyst under the pseudonym “xoom” said that the crypto asset’s trajectory shows a bullish setup despite a lack of a Christmas rally. As per their analysis, the market is displaying a bullish engulfing candle with rising volume, emerging from the lows of a megaphone pattern.
This type of pattern often signals an imminent breakout. If the pattern plays out, the analyst predicts a potential price range of $110k-$130k by the end of January, with $120k as a realistic target. While volatility and a brief dip to shake out weaker hands are possible, any pullback is expected to be short-lived, with the overall trend pointing upward.
The analyst also sees the potential for Bitcoin to reach $135k–$140k or higher in the coming months. With such developments on the horizon, the analyst believes now is not the time to stay on the sidelines, as the next move could spark the beginning of a significant rally.
The post Binance Bitcoin Reserves Hit Lowest Level in 2024, Possible Indicator of Bullish Reversal appeared first on CryptoPotato.
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