Bitcoin (BTC) is struggling to maintain its position above $88,000, with a decrease of 2% reported on a recent Tuesday. This downturn is coupled with relevant data revealing a decline in the number of active users on the Bitcoin blockchain.

Founder and CEO of Alphractal, Joao Wedson, commented, “this is not a good sign.”

Concerns for Miners

According to Alphractal’s analysis, Bitcoin’s transaction fees have hit their lowest point since January 2011. This drop can be largely attributed to the dwindling volume of Bitcoin transfers on the network.

While these low fees might be beneficial for users, they present significant challenges for miners, as reduced fees can lead to decreased financial incentives. As a result, some miners might be compelled to liquidate their BTC assets to meet operational expenses. Alphractal further noted that the Fee-to-Price ratio has stabilized, underscoring that at present BTC prices, making transactions remains very economical.

Additionally, new data from CryptoQuant indicates an uptick in selling pressure from miners, particularly on Binance. The miner flow data to exchanges suggests several surges on December 11, 17, and 19, coinciding with Bitcoin’s price holding steady.

This metric represents the net amount of Bitcoin transferred from miners’ wallets to exchanges. Positive values suggest that miners are depositing more BTC than they are withdrawing, a behavior often indicative of an upcoming sale. Given that this group is a crucial source of new BTC, their actions can significantly sway short-term market trends.

Historical trends have shown that increases in miner deposits on exchanges tend to create a headwind against price increases, especially during flat market conditions.

Future Considerations

Crypto analyst Mr. Wall Street remarked that amidst general bearish sentiment for the mid-to-long term, Bitcoin is currently displaying bullish signs short-term due to a lack of selling pressure. He indicated that he has taken long positions within the $80,000 to $84,000 range, anticipating a relief bounce soon.

Bitcoin subsequently tested support around $84,000, aligning with the 100-week moving average, which prompted his long entry at $84,550. He plans to close this position within the $98,000 to $104,000 range, where he sees optimal liquidity.

Nevertheless, Mr. Wall Street voiced caution, predicting that BTC might decline further later and adjusting his downside target to the $64,000-$70,000 range, expected to materialize in late Q1 or early Q2 2026.