Bitcoin has seen a setback after the holiday season, losing nearly 4% of its value in the past day. This latest downturn has pulled the price below $95,200 on Thursday. In fact, after several adjustments since mid-December, Bitcoin has almost erased its monthly gains. However, data suggests there may still be room for further bullish moves.

Binance Reserves Decrease

The latest analysis from CryptoQuant shows that Binance's Bitcoin reserves have dropped to their lowest level since the beginning of 2024. Notably, this decline began in August and reflects a similar trend observed in January when reserves also hit a low, just before BTC price increased by 90%.

This milestone coincides with the time Bitcoin reached its all-time high of around $108,000. The gradual decline in reserves on Binance indicates that investors are increasingly confident in Bitcoin's long-term potential, choosing to withdraw their holdings rather than keep them on exchanges for short-term selling.

Historically, such pullback periods are often associated with an increase in positive market momentum.

Meanwhile, CryptoQuant data also shows a spike in Bitcoin demand, as OTC desks report their largest monthly inventory reduction in 2024, with a decrease of 26,000 BTC. Since November 20, the total balance held by these desks has dropped by 40,000 BTC, providing evidence that supply is tightening.

The decrease in available inventory indicates that demand is increasing, thereby contributing to market-building momentum. The continuous withdrawal of Bitcoin from OTC exchanges suggests growing confidence in this asset, which could set the stage for the next move as supply becomes more limited.

Bitcoin: $120k Is a Realistic Target for January

While Bitcoin may have traded below $100,000 for nearly a week now, experts suggest it is preparing for a major move. A cryptocurrency analyst known as 'xoom' stated that the trajectory of the cryptocurrency asset suggests a bullish setup despite no price surge around Christmas. According to their analysis, the market is displaying a bullish engulfing candle with increasing volume, emerging from the lows of a bullish pennant pattern.

This pattern often signals an impending breakout. If this pattern plays out, the analyst predicts a potential price range of $110,000–$130,000 by the end of January, with $120,000 as a realistic target. While there may be volatility and a short-term pullback to shake out weaker hands, any retreat is expected to last only briefly, with the overall trend pointing upwards.

Analysts also see the potential for Bitcoin to reach $135,000–$140,000 or higher in the coming months. With such developments on the horizon, analysts believe now is not the time to sit on the sidelines, as the next move could trigger a significant rally.

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