BTC will remain below $90k until these metrics change

Bitcoin is a cryptocurrency (BTCThe price of ) is still hovering around $87,000. However, the onchain and exchange liquidity metrics indicate that there are low levels of participation in this market, limiting it from moving above $90,00,000.

The key takeaways

• Bitcoin was trading near $88,000, as the network activity dropped to its lowest level in a year and there was a decrease in selling pressure. 

• Binance’s and Coinbase’s inflows of exchange have fallen sharply. This indicates tighter liquidity.

As Bitcoin price remains stable, the network’s activity has decreased.

CryptoQuant Data pointed Bitcoin’s utility network has slowed down. The average number of addresses active over the last 30 days has fallen to 807,000. This is the lowest in the previous year. Retail users as well as short-term investors have reduced their participation.

This is reinforced by the behavior of exchange flows. Binance is seeing a decline in both the number of addresses for depositing and withdrawals. Both metrics are now at an all-time low. The market is in a stalemate, which explains the slowdown.

The low deposit activity indicates that long-term investors aren’t rushing to make a sale, which keeps the pressure on sell-side in check. At the same, the low withdrawals suggest that the aggressive accumulation of funds has stopped, and investors have exercised caution. 

Exchange inflows reduce, causing a tightening of liquidity

In addition, the data on inflows of exchange values shows that liquidity has been changing under stable prices.

When Bitcoin reached $88,500 on November 24, seven-day total inflows were $21 Billion on Coinbase, and $15.3 Billion on Binance. These figures reflect a significant repositioning.

Binance, on the other hand, experienced a modest drop to $10.30 billion. Coinbase’s inflows fell by nearly 63%. This signal indicates that new liquidity has been reduced, which is indicative of a decrease in trading and overall tighter conditions.

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This BTC Level may determine the next step

Bitcoin’s technical range is between $85,000-$90,000. The price has repeatedly failed to rise above resistance. BTC is trading below the volume-weighted monthly average price (VWAP), reinforcing neutral to cautious bias.

Binance’s liquidity clusters suggest that there are two main magnet zones. To the downside, an FVG (fair-value gap) on buy-side from $85,800-$86,500 is a cluster of long-leveraged exposure.

This zone is a potential target for liquidation of long positions worth over $60,000,000.

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Similarly, the sell-side FVG on the downside from $90 600 to $92,000 is still unfilled, and has approximately $70 millions in exposure for short liquidation. Bitcoin’s direction in the short term will be determined, with liquidity defined clearly above and beneath the price. 

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