Bitcoin (BTC) Reserve on Binance Exchange Drops to January 2024 Lows, Signaling a Bullish Long-Term Outlook: CryptoQuant

Binance exchange Bitcoin [BTC] reserve has dropped to January 2024 lows, a trend that a CryptoQuant analyst deemed as a positive outlook for the asset in the long term.

Binance Bitcoin [BTC] reserves hit January 2024 lows, a development that a CryptoQuant analyst viewed positively for the asset in the long term.

Since August, Binance’s reserves have decreased from 630K BTC to about 580K BTC.

These lows were last seen in January, just before US BTC ETFs became available and sparked a 90% pump, according to Dark Fost, a pseudonymous analyst.

The decreasing reserves indicated that more BTC was being withdrawn from Binance for self-custody, potentially setting the stage for a future price rally.

Fost also noted that the outflows contributed to BTC’s positive long-term outlook.

Notably, the August-December decline in BTC reserves on the Binance exchange coincided with the cryptocurrency’s surge to a record high of $108K.

So, as Christmas passes and attention turns to the upcoming Trump inauguration, what’s next for BTC?

Bitget Research chief analyst Ryan Lee anticipated BTC to remain within a range of $94K-$105K, with a potential breakout after the holidays. He stated,

“The expected trading range for BTC this week is $94,000 – $105,000. The price is expected to exceed $105,000 after Christmas.”

Since Christmas Eve, BTC has hovered around the $100K mark, prompting bullish calls for $110K in the last few hours.

However, Santiment warned that a breakout to $110K would likely occur when people are least expecting it. The analytics firm stated,

“Traders are now swinging bullish once again, with speculation of $110K getting rampant. Historically, we will see $110K Bitcoin only after the crowd doesn’t expect it, like in this image.”

At the time of writing, BTC was valued at $97.8K, approximately 10% below its all-time high of $108.3K.