- Bitcoin (BTC) is trading in a low-liquidity “air gap” between $110K and $116K, according to Glassnode.
- The market is “re-finding its footing” after a post-all-time-high correction amidst low volume and weak conviction.
- Spot Bitcoin ETF flows recently turned negative, with a 1,500 BTC outflow marking the largest since April.
Bitcoin is treading water around the $115,000 mark on Thursday morning in Asia, up a modest 1% over the last 24 hours, as the inevitable correction following its recent all-time high continues to unfold amidst low trading volumes and a clear lack of market conviction.
Analysts are now closely watching a low-liquidity zone that could either serve as a new foundation for the next leg up or become a trapdoor for a deeper price drop.
According to on-chain analytics firm Glassnode, Bitcoin has entered what it describes as an “air gap”—a low-liquidity zone between $110,000 and $116,000.
This has occurred after the price broke down from a major supply cluster where short-term holders had previously found significant support. These “air gaps” are areas that typically see very little historical trading activity.
They can either provide an opportunity for new buyers to accumulate positions and build a strong base, or, if demand fails to materialize, they can lead to sharp and swift moves to the downside.
“The market is effectively re-finding its footing,” the Glassnode analysts wrote, framing the range between $110,000 (the prior all-time high) and and 116,000 (the cost basis for recent buyers ) as the new critical battleground.
They noted that while some opportunistic buying has emerged on there cent dip, with approximately 120,000 BTC acquired by new buyers, the price has yet to reclaim key resistance levels convincingly.
A particularly important threshold is the 116,9K level, which marks the entry point for many recent short-term holders.
Cooling sentiment: ETF outflows and reduced leverage
Several indicators point to a cooling of the bullish fervor that recently propelled Bitcoin to its record highs. Short-term holder profitability has dropped from a peak of 100% down to 70%.
While Glassnode frames this as a typical development for a bull market’s mid-phase, they caution that…