Binance’s Bitcoin stock has reached January levels – months before BTC jumped 90%
Bitcoin on Binance, the world's largest crypto exchange, fell to levels not seen since January 2024, two months before Bitcoin's price soared 90 percent in March.
If Bitcoin follows the same pattern with its current price of $98,680, that means a price of $187,500 in a few months.
Signs investors are confident.
Binance's Bitcoin (BTC) reserves recently fell below 570,000 BTC – the lowest level since January, according to CryptoQuant promoter Darkfost in a Dec. 25 analyst note.
When currency reserves decrease, this typically indicates that investors are moving Bitcoin into cold storage and that long-term price assumptions about Bitcoin are being bullish.
At the time of publication, the value of Bitcoin is $98,680. Source: CoinMarketCap
Earlier this year, Binance's stock fell to the same level in January as Bitcoin rose two months later on March 13 to $73,679, a high at the time.
“When withdrawal periods occur, it's usually a sign of positive sentiment building in the market,” Darkfost said.
Bitcoin dominance hovers below 60%
According to TradingView, Bitcoin dominance is currently at 58.40%, below the critical 60%.
However, some analysts believe that the 60% level could indicate a wider turn to other crypto assets.
On August 18, Benjamin Cowen, the founder of Cryptoverse, believed that Bitcoin “will make its last move” in December after 60%, which ended up hitting October two months later.
At the time of publication, Bitcoin dominance is set at 58.40%. Source: TradingView
Meanwhile, Bitcoin has struggled to hold above $100,000 psychologically after breaching that level on December 5.
After reaching a new high of $108,300 on December 17, Bitcoin price has been trading at $100,000 since December 19.
Related: Bitcoin bulls are back: BTC derivatives data hints at rally at $105K
According to Ryan Lee, chief analyst at BitGate Research, Bitcoin price could exceed $105,000 after liquidity returns after the Christmas holidays.
The current decline in bitcoin is a typical symptom of holiday illiquidity, Lee recently told Cointelegraph.
“After Christmas, market activity typically picks up again, with funds expected to actively invest in sectors likely to benefit from Trump's upcoming inauguration… Expected trading volume for BTC this week is $94,000 – $105,000.”
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This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
