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Binance Bitcoin Reserves Hit Lowest Level in 2024, Possible Indicator of Bullish Reversal
Despite a post-holiday setback, Bitcoin’s recent dip under $95.2k could mark a potential buying opportunity for market observers. This latest drop briefly pushed the cryptocurrency’s price below $95.2k on Thursday.
The downturn came after Bitcoin lost almost 4% in value over the past day. Furthermore, since mid-December, multiple corrections have nearly eliminated its monthly gains.
However, data suggests there might be room for upward movement. According to CryptoQuant analysis, Binance’s Bitcoin reserves have dropped to their lowest levels since the start of 2024. This decline started in August and is reminiscent of a similar trend seen in January, when reserves hit a low, a development that preceded a 90% price surge in BTC.
Interestingly, at this time, Bitcoin reached an all-time high of approximately $108,000.
The diminishing reserves on Binance indicate that investors are becoming increasingly confident in Bitcoin’s long-term prospects and prefer to withdraw their holdings instead of leaving them on the exchange for short-selling purposes. Historically, these types of withdrawals have been linked with the buildup of positive market momentum.
Moreover, CryptoQuant data also revealed a surge in Bitcoin demand, as over-the-counter (OTC) desks reported their largest monthly inventory decline since 2024 began, which is a reduction of 26,000 BTC. Since November 20, the overall balance held by these desks has decreased by 40,000 BTC, suggesting that supply is becoming increasingly tight.
This decrease in available inventory implies that demand is rising, thus contributing to a growing momentum in the market.
As such, some experts are now considering Bitcoin’s current trajectory and predicting a significant rally.
Source: cryptopotato.com
