Bitcoin's price has remained stable near $88,000, but activity within the network has sharply declined, indicating a lack of market participation. As of now, the cryptocurrency is struggling to breach the $90,000 threshold due to reduced liquidity and diminished trading activity.
Data from CryptoQuant revealed that the 30-day moving average of active addresses for Bitcoin has fallen to approximately 807,000, marking the lowest point in a year. This downturn suggests a significant drop in engagement from both retail investors and short-term traders.
Exchange inflows have also seen a notable decrease. On November 24, inflows were at $21 billion for Coinbase and $15.3 billion for Binance, but by December 21, these figures plummeted to $7.8 billion and $10.3 billion respectively. The decline in inflow activity further illustrates a tightening of liquidity in the market.
Currently, Bitcoin remains trapped within a price range of $85,000 to $90,000, repeatedly failing to maintain momentum above resistance levels. The market appears to be in a state of caution, with both sell pressure and accumulation on hold.