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.
Bitcoin active addresses decline. Source: CryptoQuant
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.
Bitcoin, Ether exchange inflows on Coinbase, Binance. Source: CryptoQuant
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.
_Bitcoin four-hour chart. Source: _Cointelegraph/TradingView
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.
Bitcoin liquidation heatmap. Source: CoinGlass
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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BTC is quoted at about $71,646, up about 6.1% from $76,000; ETH is quoted at about $2,215
Gate News update, April 12, BTC’s current price is about $71,646, up about 6.1% from $76,000; ETH’s current price is about $2,215, up about 8% from $2,400.
GateNews36m ago
BTC Whale Inflows Drop, LTHs Accumulate Strongly
Recent data shows Bitcoin whale inflows to exchanges have dropped to below $3 billion, indicating reduced selling pressure. Meanwhile, long-term holders have accumulated $49 billion in Bitcoin, signaling a market transition. This shift suggests potential stability and reduced volatility, although macro factors could still affect prices.
Coinfomania52m ago
NewsAlert: Trump Issues Iran Ultimatum – How BTC, ETH, And XRP is Reacting
Trump raised the temperature again with a fresh Iran deadline and warnings of overwhelming force. The rhetoric was extreme, and markets treated it as immediate macro risk.
To be precise, widely cited reports quote Trump saying Iran could be destroyed “in one night” if no deal is reached, not
LiveBTCNews1h ago
Macro investors: A BTC breakout above $76,000 and an ETH breakout above $2,400 may signal a trend reversal
Macro investor Jordi Visser believes that if Bitcoin and Ethereum break through $76,000 and $2,400 respectively, it will kick off a sustainable uptrend. He expects high inflation to push investors to seek profitable assets, and notes that the probability of an economic recession has fallen to 24%. This view contrasts with the current bearish expectations in the crypto industry.
GateNews1h ago
U.S.-Iran talks break down, BTC spikes then pulls back—how do geopolitical conflict and macro data affect the crypto market?
The breakdown of the nuclear talks between Iran and the U.S. caused Bitcoin to surge and then pull back, with the situation in the Strait of Hormuz and macroeconomic data becoming the focus. This article will explain the logic behind volatility in the crypto market amid geopolitical conflict and the movement of on-chain capital.
InstantTrends1h ago
Bitcoin Developers Release Major Update on Testnet, What Changed? - U.Today
Bitcoin developers have released v31.0rc4 for testing, introducing enhanced privacy through Tor and I2P networks, improved mempool design, fee efficiency, and performance upgrades. This update aims to optimize transaction management and protect user anonymity.
UToday2h ago
