Bitcoin’s value took a hit after the holidays, but recent data suggests that the asset is gaining momentum. Binance reserves have plummeted to their lowest levels since 2024 began, signaling that investors are becoming more confident in Bitcoin’s long-term potential.
This trend is particularly noteworthy as it mirrors a similar decline observed in January, which preceded a massive 90% rally in BTC’s price. As Bitcoin hit an all-time high of around $108,000, the dwindling reserves indicate that investors are opting to withdraw their holdings rather than holding them on the exchange for short-term gains.
Historically, such periods of withdrawal have been associated with positive market momentum. CryptoQuant data also shows a surge in Bitcoin demand, with OTC desks reporting their largest monthly inventory decline of 2024, dropping by 40,000 BTC since November 20. This suggests that supply is becoming increasingly constrained, which could contribute to building market momentum.
One crypto analyst believes that $120,000 could be a realistic target for January’s price range, with the potential for even higher prices in the coming months. The analyst points to a bullish engulfing candle and rising volume as signs of an imminent breakout from the megaphone pattern. If the pattern plays out, it could lead to significant gains.
While volatility is possible, the overall trend suggests that Bitcoin’s next move will be upward. With investors growing more confident in the asset’s long-term potential, now may not be the time to stay on the sidelines.
Source: https://cryptopotato.com/binance-bitcoin-reserves-hit-lowest-level-in-2024-possible-indicator-of-bullish-reversal