Bitcoin continues to trade in a narrow range near $87,000–$88,000, struggling to build enough momentum to reclaim and hold above the $90,000 level. While price action has remained relatively stable, onchain data and exchange liquidity metrics suggest the market is currently operating in a low-participation environment, limiting the strength of any upside breakout.
At the time of writing, Bitcoin is hovering near $87,000, with traders closely watching whether reduced sell pressure can eventually translate into renewed demand.
Bitcoin 1Y CHART
Network activity drops as price holds steady
Onchain data from CryptoQuant shows a clear slowdown in Bitcoin network activity. The 30-day moving average of active addresses has fallen to around 807,000, marking the lowest reading of the past year. This decline points to reduced engagement from both retail participants and short-term traders.
Lower network usage often reflects caution rather than panic. With fewer addresses interacting on-chain, it suggests that speculative activity has cooled, even as long-term holders appear comfortable holding through current price levels.
Exchange flow data reinforces this view. The number of depositing and withdrawing addresses on major exchanges such as Binance and Coinbase has dropped to annual lows. This combination signals a market stalemate, where neither aggressive selling nor strong accumulation is taking place.
Low deposit activity indicates that long-term holders are not rushing to offload coins, keeping sell-side pressure contained. At the same time, subdued withdrawal activity suggests that large-scale accumulation has paused, as investors wait for clearer direction.
Bitcoin active addresses decline
Liquidity tightens across major exchanges
While Bitcoin’s price remains near the same levels seen in late November, liquidity conditions have changed noticeably beneath the surface.
On Nov. 24, when BTC traded around $88,500, seven-day cumulative inflows reached roughly $21 billion on Coinbase and $15.3 billion on Binance. That level of activity reflected active repositioning by traders.
By Dec. 21, Bitcoin was still trading near $88,500, but inflows had fallen sharply. Coinbase inflows dropped nearly 63% to $7.8 billion, while Binance inflows declined to around $10.3 billion. This contraction in inflow value points to reduced short-term trading activity and tighter liquidity overall.
With fewer fresh funds entering exchanges, price movements become harder to sustain. In this environment, Bitcoin may struggle to push decisively above $90,000 without a renewed influx of capital.
Key levels that could decide the next move
From a technical perspective, Bitcoin remains range-bound between $85,000 and $90,000, repeatedly failing to sustain a breakout above resistance. The price is currently trading below the monthly volume-weighted average price (VWAP), reinforcing a neutral-to-cautious bias in the short term.
Liquidity data on Binance highlights two important zones that could shape Bitcoin’s next move. On the downside, a buy-side fair value gap between $85,800 and $86,500 contains a dense cluster of leveraged long positions. A move into this zone could place more than $60 million in long exposure at liquidation risk, making it a potential downside magnet.
On the upside, a sell-side fair value gap between $90,600 and $92,000 remains unfilled, with roughly $70 million in short liquidation exposure. If Bitcoin manages to break above $90,000 with sufficient volume, this zone could accelerate upside momentum as short positions are forced to unwind.
For now, Bitcoin appears to be waiting for a catalyst. With liquidity thinning and participation muted, the battle between $85,000 support and $90,000 resistance is likely to continue until one side of the range is decisively cleared.
