Bitcoin reserves on Binance, the world’s largest crypto exchange by trading volume, has dropped to levels not seen since January 2024, just two months before Bitcoin’s price skyrocketed 90% in March.
If Bitcoin follows the same pattern with its current price of $98,680, it would mean a $187,500 price in a matter of months.
Signals investors are confident
Binance’s Bitcoin (BTC) reserves recently dipped below 570,000 BTC — the lowest level since January, according to CryptoQuant contributor Darkfost in a Dec. 25 analyst note.
When exchange reserves decline, this typically signals that investors are moving Bitcoin into cold storage and are bullish about the long-term price prospects of Bitcoin.
Bitcoin’s price is $98,680 at the time of publication. Source: CoinMarketCap
Earlier this year, Binance’s reserves had plummeted to a similar level in January before Bitcoin soared to $73,679 two months later on March 13, which was an all-time high then.
“When periods of withdrawals occur, it is often a sign of positive momentum building in the market,” Darkfost said.
Bitcoin dominance hovering below 60%
Bitcoin dominance currently stands at 58.40%, just below the critical 60% level, according to TradingView.
However, some analysts believe the 60% level could signal a wider rotation toward other crypto assets.
On Aug. 18, Into The Cryptoverse founder Benjamin Cowen said he believed Bitcoin “will make that final move” toward 60% no later than December, which it ended up tapping just two months later on Oct. 30.
Bitcoin dominance is sitting at 58.40% at the time of publication. Source: TradingView
Meanwhile, Bitcoin has struggled to hold above the psychological $100,000 since first breaking that level on Dec. 5.
Bitcoin’s price has been trading under the $100,000 mark since Dec. 19, after reaching a new high of $108,300 recorded on Dec. 17.
According to Ryan Lee, chief analyst at Bitget Research, Bitcoin’s price may exceed $105,000 once liquidity returns after the Christmas holidays.
Bitcoin’s current downtrend is an typical symptom of the holiday illiquidity, Lee recently told Cointelegraph:
“Post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump’s upcoming inauguration… The expected trading range for BTC this week is $94,000 - $105,000.”
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This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
