According to CryptoQuant, if history repeats itself, the price of Bitcoin could exceed $187,500 in the near future.
Bitcoin reserves on the Binance exchange have reached a yearly low. Image: Reuters
Bitcoin reserves on Binance hit a low
Bitcoin reserves on the Binance exchange have dropped below 570,000 BTC, a level not seen since 01/2024, according to analysis from CryptoQuant. This suggests that investors are trending towards storing assets in cold storage, reflecting confidence in Bitcoin's long-term prospects.
Statistics on Bitcoin reserves on the Binance exchange. Source: CryptoQuant (26/12/2024)
Earlier this year, Binance witnessed a similar decline in reserves, before the price of Bitcoin surged to an All-Time High of $73,679 on 13/03. Darkfost, an analyst at CryptoQuant, commented:
"Large BTC withdrawals are often a sign that the market is forming positive momentum."
Statistics on inflows and outflows on the Binance exchange. Source: CryptoQuant (26/12/2024)
If history repeats itself, the price of Bitcoin could surge in the coming months, exceeding the current level of $98,680 and reaching $187,500.
Bitcoin Dominance hovers around 60%
Bitcoin Dominance (the market share of Bitcoin in the total crypto market capitalization) is currently at 58.4%, slightly below the important 60% threshold. Some analysts believe that when BTC.D reaches 60%, capital flows may begin to shift towards altcoins. Bitcoin Dominance previously reached 60% on 30/10.
Bitcoin Dominance fluctuations on the weekly timeframe, screenshot from Tradingview at 11:15 AM on 26/12/2024
Forecast after the Christmas holiday
Bitcoin has surpassed the psychological level of $100,000 for the first time on 05/12, but was unable to maintain the upward momentum. The price has retreated below $100,000 since 19/12, after reaching a new ATH of $108,353 on 17/12.
Bitcoin price movements in the month, screenshot from CoinGecko at 10:20 AM on 26/12/2024
According to Ryan Lee, Chief Analyst at Bitget Research, the downtrend is a common phenomenon during the holiday season when market liquidity is low. He predicts that after Christmas, liquidity will return, pushing the price of Bitcoin above $105,000. The expected trading range for this week is $94,000 - $105,000. Lee also stated:
"The post-holiday market is usually more active, as funds realign their capital flows into sectors that benefit from Trump's inauguration."
Looking at the data on reserves, market dominance, and price trends, the analyses suggest that Bitcoin is forming positive momentum. If history repeats itself, the price of Bitcoin could "take off" in the coming period. However, investors should also monitor other factors such as capital flows shifting towards altcoins and the impact of major economic events.
Compiled by Coin68
