This Binance Metric Shows Investors Are Ready to Buy the Dip as BTC Falls to $95,000

Bitcoin’s inability to challenge its all-time high above $99,800 led to a painful price drop on Monday that pushed it south of $98,000 to below $95,000.

However, the picture could soon change 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 below $95,000 after a relatively quiet weekend. It cost over-leveraged traders dearly, as total liquidations have soared to nearly $550 million on a daily basis, with longs taking the lion’s share.

However, there are certain indicators that suggest that BTC’s impressive rally that began after Trump’s victory is far from over. Aside from the relative unrealized profit metric, which still shows that the market has yet to reach an overheated state, a recent CryptoQuant report points to more buying power ready to be unloaded.

ERC-20 stablecoin reserves on Binance have hit 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 so much.

Binance’s role is very important because of its dominance over the industry. The report describes the exchange as a “liquidity hub, attracting traders and institutions for transactions, storage and trading of stablecoins”. As such, the massive amounts of stablecoins in the midst of a market-wide pullback could be the start of another rally:

“Market Sentiment: Rising bookings indicate renewed confidence, increased trading activity and participation.” – read the report.

Binance Stablecoin Reserves. Source: CryptoQuant $120K soon?

Popular crypto YouTuber Crypto Rover weighed in on BTC’s potential during this cycle and set a target of $120,000 should the asset’s bull run continue.

Jelle told his 100,000 followers that the major cryptocurrency experienced something quite rare at the end of November: a monthly breakout. As the chart below demonstrates, these few events have led to immediate and sustained increases in asset prices, which Jelle described as: “the price generally goes up for months and months.”

Monthly outbreaks do not appear very often.

When they do, the price usually rises for months.

Don’t be shaken.#Bitcoin pic.twitter.com/ehAmr1SSyM

— Jelle (@CryptoJelleNL) December 2, 2024

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