Bitcoin is stuck below $90K until these market conditions improve

Cointelegraph

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.

Coinbase, Cryptocurrencies, Bitcoin Price, Markets, Binance, Price Analysis, Market Analysis

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.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data

Bitcoin is stuck below $90K until these market conditions improve

Risk Disclosure