Bitcoin finds itself in a delicate dance, hovering around $115,000 in Asian markets this Thursday as it navigates a low-liquidity “air gap.” This zone, stretching between $110,000 and $116,000, represents a challenging terrain for the cryptocurrency, with investors cautiously eyeing its next move. The recent dip from its all-time high (ATH) has left traders pondering whether this could be an opportunity for accumulation or a precursor to further declines. As explored in our recent coverage of Bitcoin’s drop to $115K amid profit-taking and tariff tensions, these market dynamics are influenced by a complex web of factors.
A Fragile Equilibrium
The market’s current state is akin to walking on a tightrope. According to Glassnode, Bitcoin’s entry into this “air gap” reflects a struggle to regain strong support levels after breaking from a significant supply cluster. This zone, characterized by limited trading activity, could either act as a foundation for future gains or a slippery slope into deeper losses if buyer interest wanes.
“Bitcoin is searching for its footing,” Glassnode analysts commented, highlighting the range between $110,000 and $116,000 as a pivotal battleground. They noted that recent opportunistic buying has seen 120,000 BTC snapped up at lower prices, yet the elusive $116,900 resistance level remains unconquered, indicating cautious sentiment among short-term holders.
Market Sentiment and Caution
With short-term holder profitability slipping from 100% to 70%, concerns about the sustainability of this bull phase are mounting. Glassnode warns that without significant new inflows, market sentiment could sour quickly. Adding to the uncertainty, ETF flows have turned negative, with a notable 1,500 BTC outflow earlier this week, marking the largest since April. For a deeper dive into these ETF flow dynamics, see our coverage of BTC’s rebound and ETF flows.
Market maker Enflux echoed this sentiment, describing the crypto landscape as being in a “fragile holding pattern.” They noted, “While there’s some relief in altcoins, major players like BTC and ETH are struggling to inspire confidence.” Enflux’s client note further emphasized the cautious stance among speculators, with cooling funding rates in the derivatives market reflecting reduced leverage.
Ethereum, meanwhile, has shown signs of life with a 2% rise to just below $3,600. Yet, as Enflux points out, until both BTC and ETH demonstrate strength with substantial volume, the market’s trajectory could remain sideways or even downward.
Future Implications
The market’s next chapter hinges on whether buyers will rally within this low-volume zone or if a further pullback towards $110,000 is necessary to reset the trend. For now, traders remain wary, and the bulls have yet to prove their mettle.
In a broader context, a potential Bitcoin supply shock—fueled by dwindling OTC desk reserves and steady corporate accumulation—could “uncork” BTC price action if it dips below $110,000, according to market observers. Meanwhile, Ethereum faces its own set of challenges, with sell pressure mounting and the risk of a significant decline by September looming large.
As we navigate the rest of 2025, the question remains: will Bitcoin and Ethereum find the strength to break free from their respective shackles, or will the crypto market’s heavy legs continue to weigh it down? Only time will tell, but one thing is clear—these are pivotal moments for the digital asset landscape.
Source
This article is based on: Asia Morning Briefing: Bitcoin Slips Into Low-Liquidity ‘Air Gap’ as Post-ATH Drift Continues
Further Reading
Deepen your understanding with these related articles:
- Bitcoin dips below $115K as Trump tariff order fails to comfort investors
- Bitcoin Correction Could Linger for Months: CryptoQuant
- Bitcoin price eyes $116K liquidity sweep with ETF comeback in focus
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
