Bitcoin Caught in Low-Liquidity ‘Air Gap’ as Post-All-Time-High Correction Persists
Bitcoin (BTC) is holding steady near $115,000 early Thursday in Asia, showing a modest 1% gain over the last 24 hours amid ongoing correction following its recent all-time high. Trading volume remains thin, and market conviction is fragile.
Glassnode data indicates BTC has entered an “air gap” — a low-liquidity zone between $110,000 and $116,000 — after breaking below a key support area where short-term holders had previously found stability.
These low-activity zones can serve as either accumulation points or traps that lead to further declines if buying momentum does not pick up.
“The market is essentially trying to regain its footing,” Glassnode analysts said, marking the range between the previous ATH at $110,000 and the recent buyer cost basis at $116,000 as a critical battleground.
Although opportunistic buyers have accumulated about 120,000 BTC during the dip, prices have yet to break above crucial resistance levels, especially near $116,900, linked to recent short-term holder activity.
Profitability for short-term holders has fallen from 100% to about 70%, a pattern consistent with the mid-stage of a bull market. However, a lack of fresh capital inflows risks eroding sentiment. Bitcoin ETFs saw outflows of 1,500 BTC this week — the largest since April — while funding rates in derivatives markets have cooled, reflecting reduced leverage and a more cautious trader stance.
Market maker Enflux echoed these observations: “Crypto markets remain fragile. Despite some relief in altcoins, majors like BTC and ETH struggle to inspire confidence amid light volume.”
Ethereum (ETH) gained 2% in the last day, trading just below $3,600. The CoinDesk 20 Index, which tracks a broad basket of crypto assets, rose 1.69% to 3,815.22.
Enflux added, “Until BTC and ETH regain strength backed by volume, the most likely path is sideways or downward.”
The next market direction depends on whether buyers step up to form a base in this low-volume zone or if prices need to retreat toward $110,000 to reset momentum. For now, traders remain cautious, and bullish conviction has yet to materialize.
Market Highlights:
- Bitcoin: Analysts warn of a possible supply crunch as OTC desk reserves dwindle and corporate accumulation steadies, which could spark renewed price action after BTC dips below $110,000.
- Ethereum: ETH may have hit a local top as $419 million in sell pressure—the second highest on record—mounts near $4,000 resistance. This zone previously preceded a 66% crash in late 2024, raising concerns of a 25–35% pullback by September. Polymarket sentiment remains split, with 48% betting on a rally to $5,000 despite bearish indicators.
- Gold: After a three-day advance driven by economic worries, gold’s rally stalled as traders booked profits amid rising odds of Fed rate cuts, U.S. trade tensions, and potential Fed leadership changes. Spot gold traded at $3,372.11, down 0.24%.
- Nikkei 225: Asia-Pacific markets opened mixed Thursday. Japan’s Nikkei 225 remained flat as investors brushed off fresh U.S. semiconductor tariff threats.
- S&P 500: U.S. stock futures stayed steady Wednesday night as investors digested new semiconductor tariffs. The S&P 500 remains up 1.7% for the week.
