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Binance Bitcoin reserve drops to January 2024 lows – Sign of a looming rally?
The recent drop in the Binance Bitcoin reserve has led many to speculate about the potential implications for the asset’s future price movements. According to data, the Binance exchange’s Bitcoin reserve has fallen from over 630,000 BTC in August to around 579,000 BTC, mirroring lows last seen in January.
This significant decline in reserves raises the question of whether this trend could be a precursor to a potential rally. Noted pseudonymous analyst Dark Fost points out that these low levels were previously witnessed in January before US Bitcoin ETFs went live and triggered a massive 90% pump.
The Binance reserve’s drop also indicates an increased movement of Bitcoin off the exchange, potentially signaling a rise in self-custody holdings. This trend is seen as a positive long-term outlook for the asset by Fost, who believes that outflows reinforce BTC’s positive prospect.
What does this mean for Bitcoin’s price? Interestingly, the August-December decline in Binance reserve coincided with the cryptocurrency’s pump to an all-time high of $108,000. As traders and analysts begin to focus on the upcoming Trump inauguration, a prediction has emerged from Bitget Research chief analyst Ryan Lee. According to Lee, “I expect the trading range for Bitcoin this week will be between $94,000 and $105,000.” He also adds that there is potential for the price to exceed $105,000 after Christmas.
In the short term, it appears that Bitcoin has been flirting with the $100,000 mark, sparking renewed bullish calls for a potential breakout to $110,000. However, analytics firm Santiment cautions against such expectations, suggesting that historically, Bitcoin does not typically break above $110,000 when expected.
Source: ambcrypto.com
