Bitcoin reserves on Binance, the world's largest Cryptocurrency exchange by trading volume, have fallen to levels not seen since January 2024, just two months before Bitcoin's price surged by 90% in March.
If Bitcoin continues on this trajectory with the current price of $98,680, it could mean the price will reach $187,500 in just a few months.
Confident investor signal
Binance's Bitcoin (BTC) reserves have recently dropped below 570,000 BTC — the lowest level since January, according to analyst Darkfost's notes on CryptoQuant on December 25. Details.
As reserves on exchanges decrease, this is often a sign that investors are transferring Bitcoin to cold storage and are optimistic about Bitcoin's long-term price prospects.
The price of Bitcoin is $98,680 at the time of publication. Source: CoinMarketCap
Earlier this year, Binance's reserves dropped to a similar level in January before Bitcoin surged to $73,679 on March 13, reaching an all-time high at that time.
"When withdrawal phases occur, this is often a sign of positive momentum forming in the market," Darkfost said.
Bitcoin Dominance hovers below 60%
Bitcoin Dominance currently stands at 58.40%, just below the important threshold of 60%, according to TradingView.
However, some analysts believe that the 60% level could signal a broader shift towards other Cryptocurrency assets.
On August 18, the founder of Into The Cryptoverse, Benjamin Cowen, stated that he believes Bitcoin will make its final move towards 60% by December at the latest, something it achieved just two months later on October 30.
Bitcoin Dominance is 58.40% at the time of publication. Source: TradingView
Meanwhile, Bitcoin has struggled to maintain above the psychological threshold of $100,000 since first surpassing this level on December 5.
The price of Bitcoin has traded below $100,000 since December 19, after reaching a new high of $108,300 recorded on December 17.
According to Ryan Lee, chief analyst at Bitget Research, the price of Bitcoin could surpass $105,000 as liquidity returns after the Christmas holidays.
The current downward trend of Bitcoin is a typical symptom of low liquidity during the holidays, Lee stated to TinTucBitcoin:
"After Christmas, market activity usually rebounds, with funds expected to actively position themselves for sectors likely to benefit from Trump's upcoming inauguration... The expected trading range for BTC this week is $94,000 – $105,000."
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