Bitcoin’s inability to challenge its all-time high of over $99,800 resulted in a painful price slump on Monday that pushed it south from $98,000 to under $95,000.
However, the landscape could soon change, as investors seem primed to start inserting fresh funds into the market.
BTC to Head North Soon?
CryptoPotato reported BTC’s price drop that drove the asset to a multi-day low of under $95,000 after the relatively quiet weekend. It cost over-leveraged traders dearly as the total liquidations have shot up to almost $550 million on a daily scale, with longs responsible for the lion’s share.
However, there are certain indicators that suggest BTC’s impressive rally that started after Trump’s victory is not over. Aside from the relative unrealized profit metric, which still shows that the market has not reached an overheated state yet, a recent CryptoQuant report hints at more buying power prepared to be discharged.
The ERC-20 stablecoin reserves on Binance have reached a new all-time high of over $28 billion. This means that the capital sitting on the sidelines waiting for proper opportunities to enter the market on the world’s largest crypto exchange has never been so much.
Binance’s role is highly significant due to its dominance over the industry. The report depicts the exchange as a “liquidity hub, attracting traders and institutions for stablecoin transactions, storage, and trading.” As such, the massive amounts of stablecoins sitting there amid a market-wide retracement could be the beginning of yet another rally:
“Market Sentiment: Rising reserves indicate renewed confidence, increased trading activity, and staking.” – reads the report.
$120K Soon?
Popular crypto YouTuber Crypto Rover weighed in on BTC’s potential during this cycle and outlined a target of $120,000 should the asset’s bull run continue.
Jelle told his 100,000 followers that the primary cryptocurrency experienced something rather rare at the end of November – a monthly breakout. As the chart below demonstrates, these scarce occurrences have led to immediate and continuous price surges from the asset, which Jelle described as – “price generally pumps for months on end.”
Monthly breakouts don’t come around very often.
When they do, price generally pumps for months on end.
Don’t get shaken out.#Bitcoin pic.twitter.com/ehAmr1SSyM
— Jelle (@CryptoJelleNL) December 2, 2024
