Bitcoin liquidity is in crisis: exchange reserves hit new lows, and the market faces a consolidation test

【Crypto World】Bitcoin is currently facing a critical liquidity bottleneck. The inter-exchange capital flow pulse indicator has entered the red alert zone, which in history often signals that the market is about to enter a correction or sideways consolidation. More notably, exchange reserves remain at historically low levels, indicating that the available bitcoin supply in the market is tightening.

What’s interesting is that—Bitcoin’s price is still hovering near recent highs, but liquidity is deteriorating. What does this mismatch indicate? It suggests that whether the price can stabilize in the short term largely depends on whether the market can regain liquidity. Once reserves continue to decline, even minor fluctuations on the demand side could trigger sharp price reactions. In other words, current Bitcoin is like a sensitive balance scale; a slight gust of wind can easily cause it to tip.