Bitcoin’s inability to challenge its all-time high above $99,800 resulted in a painful price drop on Monday that pushed it down from $98,000 to below $95,000.
However, the picture could change soon, as investors seem ready to start inserting new funds into the market.
Will BTC Head North Soon?
CryptoPotato reported the BTC price drop that took the asset to a multi-day low of under $95,000 after a relatively quiet weekend. It cost overleveraged traders dearly, as total liquidations have skyrocketed to nearly $550 million on a daily basis, with long positions responsible for most of it.
However, there are certain indicators that suggest that the impressive BTC rally that began after Trump’s victory is not over. Aside from the relative unrealized gains metric, which still shows that the market has not yet reached a state of overheating, a recent CryptoQuant report hints at greater purchasing power ready to be unloaded.
Reserves of the ERC-20 stablecoin on Binance have reached a new all-time high of over $28 billion. This means that the capital sitting on the sidelines waiting for suitable opportunities to enter the market on the world’s largest crypto exchange has never been greater.
Binance’s role is very important due to its dominance over the industry. The report describes the exchange as a “liquidity hub, attracting traders and institutions for stablecoin transactions, storage and trading.” As such, the huge amounts of stablecoins sitting there amid a market-wide pullback could be the start of another rally:
“Market sentiment: Rising bookings indicate renewed confidence, increased trading and betting activity.” – read the report.
$120,000 soon?
Popular crypto YouTuber Crypto Rover weighed in on BTC’s potential during this cycle and outlined a target of $120,000 in case the asset’s bull run continues.
Jelle told his 100,000 followers that the leading cryptocurrency experienced something quite strange at the end of November: a monthly breakout. As the chart below demonstrates, these rare instances have led to immediate and continuous price increases for the asset, which Jelle described as: “the price typically increases for months.”
Monthly outbreaks do not occur very often.
When they do, the price usually increases for months.
Don’t get carried away.#Bitcoin pic.twitter.com/ehAmr1SSyM
-Jelle (@CryptoJelleNL) December 2, 2024
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