Title: Is Bitcoin Set to Soar Above $120K in January?
Intro: Bitcoin took a hit after the holidays, dropping nearly 4% in value. However, recent data suggests that there could be room for further growth. Here’s what you need to know.
Body:
### The Dip After Holidays
After enjoying some festive cheer, Bitcoin faced a setback, losing almost 4% in value over the past day. This latest dip even dragged its price under $95.2k on Thursday. Following multiple corrections since mid-December, Bitcoin has nearly erased its monthly gains. But don’t despair just yet – there may still be hope for a strong comeback.
### Declining Binance Reserves Indicate Confidence in Long-Term Potential
CryptoQuant’s latest analysis reveals that Binance’s Bitcoin reserves have dropped to their lowest levels since early 2024. This decline started back in August and follows a similar trend observed in January when reserves also hit a low point before a massive 90% rally in BTC’s price. When investors start withdrawing their holdings instead of keeping them on exchanges for short-term selling, it usually means they are becoming more confident about the long-term potential of the digital currency. And historically speaking, such periods of withdrawal tend to be linked with positive market momentum.
### Increase in Demand Signals Market Momentum Buildup
In addition to declining reserves, CryptoQuant data also showed a surge in Bitcoin demand as over-the-counter (OTC) desks reported their largest monthly inventory decline of 2024, reducing their stockpile by 26,000 BTC. Since November 20th, the total balance held by these desks has dropped by 40,000 BTC – another sign of tightening supply. As availability decreases due to increased demand, market momentum builds up too. Furthermore, the ongoing withdrawal from OTC desks indicates growing trust in the asset itself which could lead us towards our next leg up once supplies become scarce enough.
### Experts Predict Major Move Forward; Analyst Eyes $120k Target by End of January
Source: Cryptopotato.com
The post Bitcoin Dips Below $95K; Lowest Binance Reserves Since Early 2024 Signal Market Momentum – What’s Next? appeared first on CoinBuzzFeed.
