Bitcoin has been on a tear recently, with its price falling below $95.2K on Thursday, erasing most of its monthly gains.
However, the data suggests that an upward move may be imminent.
Bitcoin Reserve Decline on Binance:
According to CryptoQuant analysis, Bitcoin reserves on Binance have hit their lowest levels since the beginning of 2024, a trend that began in August and mirrors a similar decline that occurred in January, just before Bitcoin’s price surged by 90%.
This decline in reserves reflects growing confidence among investors in holding Bitcoin rather than selling it in the short term, which may indicate a buildup of positive momentum.
CryptoQuant data also shows that the Bitcoin inventory on over-the-counter trading desks has decreased by 40,000 BTC since November 20.
This reflects tightening supply, which increases the likelihood of prices rising, as the withdrawal of the currency from circulation indicates long-term investor confidence.
As for the price of Bitcoin, despite Bitcoin remaining below $100,000 for a week, analysts, such as “xoom”, expect a major upward move soon.
Current market patterns show a potential bullish setup, with the price expected to reach the $110-130K range by the end of January, and $120K as a realistic target.
In the long term, the coin may reach $135-140K or more, indicating the possibility of a major rally starting soon.
