News 
December 26, 2024 
3 min. 
Bitcoin reserves on Binance, the world’s largest cryptocurrency exchange, have fallen to levels last seen in January 2024. This trend has sparked speculation about a potential price rally, as Bitcoin’s historical patterns suggest that declining reserves often signal bullish sentiment.
Binance Reserves Signal Bullish Trend
As of December 25, Binance’s Bitcoin reserves dipped below 570,000 BTC, according to data from CryptoQuant analyst Darkfost. This marks the lowest reserve level since January 2024, a period that preceded Bitcoin’s 90% price surge in March.
Typically, declining reserves indicate that investors are moving Bitcoin to cold storage, signaling confidence in the asset’s long-term value. Darkfost noted that similar withdrawal patterns in January were followed by Bitcoin’s climb to $73,679, setting a then all-time high. “Periods of withdrawals often suggest positive momentum is building,” he added.
Currently trading at $98,680, Bitcoin’s price could follow a similar trajectory, potentially reaching $187,500 in the coming months if the pattern repeats.
Bitcoin Dominance and Price Outlook
Bitcoin’s dominance in the crypto market is currently at 58.4%, hovering just below the critical 60% mark, per TradingView data. Analysts suggest this level could signal a rotation toward other cryptocurrencies if surpassed.
Bitcoin has struggled to maintain its position above the psychological $100,000 level, a milestone first crossed on December 5. After reaching a high of $108,300 on December 17, its price has been trading below $100,000 since December 19.
Ryan Lee, chief analyst at Bitget Research, predicts that Bitcoin could exceed $105,000 once market liquidity improves after the Christmas holidays. This projection aligns with historical trends and market optimism fueled by declining exchange reserves.
With Binance’s reserves at a low and Bitcoin dominance inching toward 60%, market watchers are closely monitoring these indicators for signs of another significant rally.
