Binance Bitcoin Reserves Hit Lowest Level in 2024, Possible Indicator of Bullish Reversal

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As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have witnessed many ups and downs, bull runs, and bear markets. The latest dip in Bitcoin‘s price might seem alarming to some, but I see it as just another temporary setback before the next big leap.

After the holiday period, Bitcoin experienced a downturn, decreasing by approximately 4% in value within a day. On Thursday, this dip temporarily dropped its price below $95,200. Since mid-December, there have been several corrections, and as a result, Bitcoin has come very close to erasing its monthly growth.

However, data suggests there could be room for more upward movement.

Declining Binance Reserves

According to recent findings from CryptoQuant, Binance’s Bitcoin holdings have reached their minimum levels since the commencement of 2024. This decrease started in August and follows a pattern seen earlier in January when reserves also dipped to a low point. Remarkably, this low reserve period was followed by an approximately 90% surge in Bitcoin’s price.

Reaching a record peak of approximately $108,000, this significant event aligns with Bitcoin’s ascent. The dwindling Binance reserves suggest that investors are becoming more optimistic about Bitcoin’s long-term prospects, preferring to take their holdings off the exchange for future use rather than quick resale.

From my perspective as a researcher, historically, these phases of retreat from the market have frequently coincided with an accumulation of favorable market trends.

At the same time, data from CryptoQuant showed an increase in Bitcoin demand. In fact, over-the-counter (OTC) trading desks reported their most significant monthly decrease of 26,000 Bitcoins in 2024, marking a reduction in their total holdings. Since November 20th, these desks have seen their Bitcoin balance drop by 40,000 coins, suggesting a shrinking supply.

The decrease in supplies implies that the interest in it is rising, thereby fueling a strengthening market trend. The continuous removal of Bitcoin from Over-The-Counter desks shows growing faith in the asset, which might lead to another upward spike as the availability continues to diminish.

Bitcoin: $120k A Realistic Target for Jan

For about a week now, Bitcoin has been trading below $100,000, but experts believe it’s on the verge of a significant surge. A cryptocurrency analyst known as “xoom” stated that the crypto’s trend indicates a bullish outlook, even though there was no Christmas rally. According to their assessment, the market is exhibiting a bullish engulfing candle accompanied by increasing volume, which has emerged from the lows of a megaphone pattern.

This kind of pattern typically indicates an upcoming surge in price. If this pattern unfolds as expected, the analyst anticipates that the price could range between $110,000 and $130,000 by the end of January, with $120,000 being a likely goal. It’s worth noting that fluctuations and a temporary drop to dissuade less committed investors may occur, but these downturns should be brief, as the overall trajectory suggests continued growth.

The expert predicts that Bitcoin’s price might climb to between $135,000 and $140,000 or even more in the near future. Given these promising prospects, the analyst advises against being idle, as the upcoming action could ignite the start of a substantial upward trend.

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2024-12-26 17:18