Binance Bitcoin reserves hit January levels — months before BTC jumped 90%

From cointelegraph by Ciaran Lyons

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$96,423 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 its long-term price prospects.

Bitcoin’s price was $98,680 at the time of publication. Source: CoinMarketCap

Binance’s reserves dropped to a similar level in January, and 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 58.4%, just below the critical 60% level, according to TradingView.

However, some analysts say 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 58.4% at the time of publication. Source: TradingView

Meanwhile, Bitcoin has struggled to hold above the psychological level of $100,000 since first breaking it 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.

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 illiquidity, Lee recently told Cointelegraph:

“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.”