Bitcoin continues to trade in a tight range around $87,000–88,000, unsuccessfully trying to build up enough strength to claim and hold the $90,000 level. Although price action has remained relatively steady, on-chain data and exchange liquidity indicators suggest that the market is currently operating in a low-participation environment, limiting the potential for any upside breakout. At the time of writing, Bitcoin is holding close to $87,000 as traders watch closely to see if reduced selling pressure can translate into renewed demand.
Bitcoin 1 Year Chart
Network activity decreases while the price remains stable
On‑chain data from CryptoQuant shows a clear slowdown in activity on the Bitcoin network. The 30-day moving average of active addresses fell to around 807,000, the lowest in over a year. This decline indicates reduced engagement from both retail investors and short-term traders. Lower network usage often reflects caution, not panic. With fewer addresses interacting on-chain, it is suggested that speculative activity has moderated, while long-term holders appear comfortable holding their coins at current price levels. Data on stock market flows support this view. The number of addresses depositing and withdrawing on major exchanges such as Binance and Coinbase has dropped to annual lows. This combination indicates a deadlock in the market, where neither aggressive selling nor strong accumulation is seen. Low deposit activity suggests that long-term holders are in no rush to sell their coins, thus keeping selling pressure under control. At the same time, low withdrawal activity shows that large-scale accumulation has been put on hold as investors wait for clearer direction.
Dropping Active Bitcoin Addresses TRADING BITCOIN
Liquidity is tight on the major exchanges
Although the price of Bitcoin remains at the same levels as at the end of November, liquidity conditions have changed noticeably behind the scenes. On November 24, when BTC was trading around $88,500, the 7-day cumulative flows reached about $21 billion on Coinbase and $15.3 billion on Binance. This level of activity reflected active repositioning by traders. As of December 21, Bitcoin was still trading around $88,500, but inflows have dropped sharply. Flows to Coinbase fell nearly 63% to $7.8 billion, and those to Binance fell to around $10.3 billion. This contraction in the value of entries indicates a reduction in short-term trading activity and tighter liquidity. With less fresh funds entering the exchanges, price movements become harder to sustain. Against this backdrop, Bitcoin may struggle to decisively break the $90,000 mark without a new infusion of capital.
Key levels that could decide the next move
Technically, Bitcoin remains in a range between $85,000 and $90,000, repeatedly failing to sustain a break above the resistance zone. The price is currently below the current month's volume weighted average (VWAP), which reinforces a neutral to cautious outlook in the near term. Liquidity data on Binance highlights two important areas that could influence Bitcoin's next move. On the downside, a fair value gap zone on the buyers side between $85,800 and $86,500 contains a dense cluster of leveraged long positions. A move in this area could jeopardize the liquidation of over $60 million in exposure, making it a potential downside magnet. On the upside, a fair value gap area on the sellers side of $90,600 to $92,000 remains uncovered, with about $70 million in short exposures that can be liquidated. If Bitcoin manages to break the $90,000 mark with enough volume, this area could accelerate the upward momentum as short positions are forced out. For now, Bitcoin seems to be waiting for a catalyst. With dwindling liquidity and diminished participation, the battle between $85,000 support and $90,000 resistance is likely to continue until one side of the range is decisively breached. TRADE BITCOIN Join 33,000+ subscribers. No spam, just useful info.