Bitcoin Reserves on Binance Hit 2024 Lows, Hinting at Bullish Reversal

Bitcoin experienced a setback after the holidays, briefly dipping below $95.2k on Thursday. The 4% decline over the past day has nearly erased its monthly gains following multiple corrections since mid-December. However, this recent dip might present a buying opportunity for investors, as market data hints at potential upward momentum.

Bitcoin Reserves on Binance Decline

Data from CryptoQuant reveals that Bitcoin reserves on Binance have reached their lowest levels in 2024. This trend began in August and mirrors a similar pattern seen in January, which preceded a 90% rally that pushed Bitcoin to its all-time high of $108,000.

The decreasing reserves suggest increased confidence in Bitcoin’s long-term potential, with investors withdrawing their holdings for storage rather than short-term trading. Historically, such behavior has signaled the buildup of positive market momentum.

Additionally, over-the-counter (OTC) desks reported their largest inventory decline of 2024, with a reduction of 26,000 BTC in December alone. Since November 20, total Bitcoin balances at OTC desks have dropped by 40,000 BTC, indicating tightening supply amid rising demand.

BTC Eyes $120k Target

Despite trading below $100,000 for the past week, analysts forecast a bullish breakout. A pseudonymous crypto analyst, “xoom,” highlighted a bullish engulfing candle forming within a megaphone pattern, often indicative of an imminent price surge.

The analyst predicts a price range of $110k–$130k by the end of January, with $120k as a realistic target. While short-term volatility and pullbacks are possible, the overall trend remains upward. The analyst also foresees Bitcoin reaching $135k–$140k or higher in the coming months, urging investors to act before the next significant rally begins.

With dwindling Binance reserves, tightening supply, and rising demand, Bitcoin appears poised for a strong rebound that could define the early months of 2024.

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