Bitcoin reserves on Binance, the world’s largest crypto exchange by trading volume, have 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
Binance’s reserves dropped to a similar level in January, but two months later, on March 13, Bitcoin surged to $73,679, marking a then all-time high.
“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.
Related: Bitcoin bulls are back: BTC derivatives data hints at rally to $105K
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 a typical symptom of the holiday…
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