Bitcoin Is Stuck Below $90k Until These Market Conditions Improve

Bitcoin holds near $87,000 as on-chain activity and exchange inflows fall, signalling tight liquidity and looming volatility.

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.

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.

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.

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.

Source: CoinTelegraph