As a seasoned analyst with over two decades of experience in the financial markets, I must say that the current state of Bitcoin reserves on Binance reminds me of a classic bullish pattern we often see before significant price surges. The last time we saw such a dip was just before the monumental 90% increase in March 2024, and if history repeats itself, we might be looking at a potential $187,500 price point for Bitcoin in the near future.
The amount of Bitcoin held on Binance, the leading global cryptocurrency exchange by trade volume, has fallen to amounts last observed around January 2024 – a period that preceded Bitcoin’s price surge by approximately 90% in March, only two months later.
If Bitcoin continues on its current trajectory with its present value at $98,680, we can anticipate that its price might reach approximately $187,500 within several months.
Signals investors are confident
According to Darkfost, an analyst from CryptoQuant, Binance’s holdings of Bitcoin (BTC) have dropped below 570,000 BTC – the lowest since January, as stated in a December 25th report.
When Bitcoin exchange reserves decrease, it often indicates that investors are transferring their Bitcoins into offline wallets (cold storage) and are optimistic about the future price growth potential of Bitcoin.
Back in early 2021, the holdings of Binance were at a comparable low as they were in January. However, just two months later, on March 13, Bitcoin reached its peak price of $73,679 – a record at that time.
In Darkfost’s words, “During times when withdrawals take place, it usually indicates that a constructive surge is developing within the market.
Bitcoin dominance hovering below 60%
Right now, the dominance of Bitcoin is approximately 58.40%. This figure is slightly below the significant threshold of 60%, as shown by TradingView data.
However, some analysts believe the 60% level could signal a wider rotation toward other crypto assets.
According to Benjamin Cowen, the founder of Into The Cryptoverse, he expressed his belief that Bitcoin would reach approximately 60% by December as early as August 18th. Remarkably, this prediction came true only two months later on October 30th.
Since hitting $100,000 for the first time on December 5, Bitcoin has found it challenging to stay above this significant milestone.
Since December 19th, the value of Bitcoin has stayed below $100,000 following its peak at $108,300 reached on December 17th.
As per predictions by Ryan Lee, the head analyst at Bitget Research, it’s possible that the value of Bitcoin could surpass $105,000 when market liquidity resumes post-Christmas season.
According to Lee’s recent statement on CryptoMoon, Bitcoin’s current decline is typically seen during holiday periods due to reduced liquidity.
“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.”
As a seasoned investor with years of experience under my belt, I would like to clarify that this article is intended for general informational purposes only. It should not be construed as legal or investment advice. My personal views, insights, and opinions expressed here are based on my own experiences and research, and they may not necessarily align with the views and opinions of CryptoMoon. I strongly encourage readers to conduct their own due diligence before making any financial decisions.
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2024-12-26 05:13