Bitcoin Enters Low-Liquidity ‘Air Gap’ as Post-ATH Correction Continues
Bitcoin (BTC) is trading near $115,000 early Thursday in Asia, up roughly 1% over the last 24 hours, as the cryptocurrency continues to navigate a post-all-time-high (ATH) correction characterized by low trading volume and hesitant market sentiment.
Glassnode data highlights that BTC has slipped into an “air gap” — a zone of low liquidity between $110,000 and $116,000 — after breaking below a key support level where short-term holders had previously found footing.
Such low-activity zones often see limited trading and can act either as a base for accumulation or lead to sharper declines if buying interest fails to materialize.
“The market is searching for stable ground,” Glassnode analysts said, pointing to the range between $110,000 (prior ATH) and $116,000 (recent buyer cost basis) as a critical battleground.
While opportunistic investors have acquired approximately 120,000 BTC during the recent dip, prices remain below key resistance levels, notably $116,900, where many short-term holders entered.
Profitability among short-term holders has declined from 100% to around 70%, a typical trend in the middle phase of a bull market. Without fresh capital inflows, sentiment could weaken quickly. Bitcoin ETFs recorded outflows totaling 1,500 BTC this week — the largest since April — and derivative funding rates have softened, indicating more cautious trading.
Market maker Enflux noted the fragile environment: “Though altcoins have seen some relief, major cryptocurrencies like BTC and ETH continue to struggle with confidence amid light volume.”
Ethereum (ETH) gained 2% in the past day, trading just below $3,600. The CoinDesk 20 Index, tracking a wide range of crypto assets, rose 1.69% to 3,815.22.
Enflux added, “Until BTC and ETH reclaim strength on higher volume, the path forward may remain sideways or downward.”
The market’s next move depends on whether buyers establish a base in this low-volume zone or if prices fall toward $110,000 to reset momentum. For now, traders are cautious, and bullish conviction remains unproven.
Market Snapshot:
- Bitcoin: Analysts highlight a potential supply squeeze as OTC reserves decline and corporate accumulation remains steady, possibly sparking renewed price movement if BTC dips below $110,000.
- Ethereum: ETH may have hit a local peak amid $419 million in sell pressure — its second-highest ever — near resistance at $4,000. This level previously preceded a 66% crash in late 2024, raising concerns of a 25–35% drop by September. Polymarket sentiment is mixed, with 48% betting on a rally to $5,000 despite bearish signals.
- Gold: Gold’s rally paused after three days of gains driven by economic worries, as traders booked profits amid rising expectations of Fed rate cuts, ongoing U.S. trade tensions, and potential Fed leadership changes. Spot gold last traded at $3,372.11, down 0.24%.
- Nikkei 225: Asia-Pacific markets opened mixed Thursday. Japan’s Nikkei 225 was flat as investors shrugged off fresh U.S. semiconductor tariff threats.
- S&P 500: U.S. stock futures remained steady Wednesday night amid reactions to new semiconductor tariffs. The S&P 500 remains up 1.7% for the week.
