While Bitcoin (BTC) continues to hover near $87,000, onchain activity and exchange liquidity metrics suggest that the market is operating in a low-participation period, limiting its move above $90,000.
Key takeaways:
Bitcoin traded near $88,000 as network activity fell to yearly lows, alongside a reduction in sell pressure.
Exchange inflows on Binance and Coinbase have contracted sharply, signalling tighter liquidity.
Bitcoin network activity fades as price holds firm
Data from CryptoQuant pointed to a slowdown in Bitcoin’s network utility. The 30-day moving average of active addresses has dropped to roughly 807,000, the lowest level in the past year, indicating reduced participation from both retail users and short-term traders.
Exchange flow behavior reinforces this signal. The number of depositing and withdrawing addresses on Binance has declined in tandem, with both metrics sitting at annual lows. This slowdown reflects a market stalemate.
Low depositing activity suggests long-term holders are not rushing to sell, keeping sell-side pressure contained. At the same time, subdued withdrawals indicate that aggressive accumulation has paused, as investors exercised caution for the time being.
Liquidity tightens as exchange inflows contract
Meanwhile, exchange inflow value data highlighted how liquidity conditions have changed beneath stable prices.
On Nov. 24, when Bitcoin traded near $88,500, seven-day cumulative inflows reached $21 billion on Coinbase and $15.3 billion on Binance, reflecting active repositioning.
By Dec. 21, BTC was still $88,500, but Coinbase inflows dropped nearly 63% to $7.8 billion, while Binance saw a more modest decline to $10.3 billion. This shift signals a broad contraction in new liquidity, pointing to reduced short-term trading activity and tighter market conditions overall.
Related: Are altcoins coming back? Why ‘Bitcoin season’ has staying power in 2026
These BTC levels may define the next move
From a technical standpoint, Bitcoin remains range-bound between $85,000 and $90,000, repeatedly failing to sustain a breakout above resistance. BTC price is currently below the monthly volume-weighted average price (VWAP) indicator, reinforcing a neutral-to-cautious bias.
Liquidity clusters on Binance suggest two key magnet zones. On the downside, a buy-side fair-value gap (FVG) between $85,800 and $86,500 contains a dense cluster of leveraged long exposure.
A move into this zone would place over $60 million in long positions at liquidation risk, making it a possible downside liquidity target.
Related: Bitcoin perpetual open interest rises as traders bet on year-end rally
Conversely, the upside sell-side FVG between $90,600 and $92,000 remains unfilled and holds approximately $70 million in short liquidation exposure. With liquidity clearly defined above and below the price, Bitcoin’s near-term direction is likely to be decided by which side of the range is tapped first.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
