Analysts Predict $110K Amid Falling Exchange Reserves, Bitcoin’s Correction Ends?

• Bitcoin’s “Cup and Handle” pattern hints at a potential surge, targeting $110K as bullish momentum builds.
• Dropping exchange reserves reflect long-term holding, aligning with Bitcoin’s price nearing $100K amid reduced market liquidity.
• Analysts see Bitcoin’s correction as temporary, with technical and on-chain metrics pointing to a continued rally in 2025.

Bitcoin begins to show signs of recovering from its corrective phase with lovers keeping a close eye on market sentiment. Recent data points to a possible recovery supported by dropping exchange reserves and technical tendencies. According to analysts Titan of crypto, a recovery might push Bitcoin to surpass its all-time high (ATH) and explore new price ranges.

“Cup and Handle” Pattern Signals Strength

On a weekly price movement from 2021 to 2024, a traditional bullish technical pattern known as the “Cup and Handle” formation may be seen. The rounded bottom of the cup was created when Bitcoin fell from $69,000 in late 2021 to $15,000 in late 2022. After that, prices steadily increased and returned to $69,000 by the middle of 2023.

The handle phase emerged with a mild retracement within a descending channel through late 2023. This consolidation phase ended with a breakout, pushing Bitcoin past $90,000 by early 2025. Based on the pattern’s depth, analysts predict a target of $110,000. Despite a post-breakout correction, prices remain strong. The consolidation below $110,000 indicates stability, suggesting the rally may resume once market sentiment solidifies.

Exchange Reserves Drop as Prices Climb

Besides the bullish technical structure, exchange reserves also hint at a positive outlook. Bitcoin’s exchange reserve began in 2024 at 2.95 million BTC and declined to 2.45 million BTC by January 2025.

This consistent decline underscores reduced liquidity on exchanges, a common sign of long-term holding. Meanwhile, Bitcoin’s price showed an inverse relationship with reserves. It climbed from under $60,000 in early 2024 to nearly $98,100 by late 2024. Temporary pullbacks coincided with reserve stabilizations, but each correction paved the way for higher price levels.

Notably, Bitcoin’s price broke past $80,000 as reserves dropped below 2.7 million BTC. By the end of 2024, heightened market activity drove prices near $100,000, emphasizing the impact of reduced exchange supply.

Bitcoin’s trajectory suggests that the correction phase may soon give way to renewed bullish momentum. The interplay between technical patterns and on-chain metrics strengthens this outlook. Moreover, market participants remain optimistic that Bitcoin could surpass its ATH and achieve its $110,000 target in the coming months.