Community Trust ScoreVerified
Bitcoin is holding near $115,000 in Thursday’s Asian session, with trading volume thinning and market conviction fading. According to Glassnode, the asset has entered what analysts are calling an “air gap”—a low-liquidity zone that could either form a foundation for a new leg higher or open the door to deeper losses.
Glassnode data reveals that BTC slipped below a key support cluster earlier this week, falling into a vulnerable trading range between $110,000 and $116,000. This area is historically thin in terms of on-chain support and trading activity, making it sensitive to volatility and sentiment shifts. Bitcoin’s all-time high, set earlier this year around $110,000, is now the lower boundary of this zone, while the upper edge aligns with the average cost basis of recent buyers.
As of Thursday morning, BTC is trading at $114,778, marking a modest 1% gain in the past 24 hours. However, analysts say this movement lacks strength due to limited participation from both institutional and retail buyers.
Market Searching for Support in BTC Low-Liquidity Zone
“The market is effectively re-finding its footing,” Glassnode wrote in a recent report. The analysts described the current range as a battleground between cautious buyers and a declining flow of new capital. They added that 120,000 BTC were purchased during the recent dip, indicating some opportunistic buying, but price action remains below key resistance levels—most notably $116,900, where short-term holders recently entered the market.
One concern flagged by Glassnode is the drop in short-term holder profitability. Previously at 100%, this metric has now fallen to 70%, which is typical during bull market mid-phases. However, without renewed buying pressure, there’s a risk of deteriorating sentiment.
ETF flows have not been supportive either. Bitcoin investment products saw a net outflow of 1,500 BTC earlier this week, the largest single-week drop since April. This signals declining institutional appetite just as the asset struggles to maintain bullish momentum.
Derivatives Market Reflects Risk-Off Mood
Activity in the derivatives space is also showing signs of retreat. Funding rates—fees paid to maintain leveraged positions—have declined, suggesting traders are reducing exposure. According to Enflux, a leading crypto market-making firm, this trend reflects a broader shift toward caution.
In a note to clients, Enflux stated, “Crypto markets remain in a fragile holding pattern. Despite some relief in the altcoin space, majors like BTC and ETH are still struggling to inspire confidence.”
The CoinDesk 20 Index, which tracks major digital assets, rose 1.69% to 3,815.22, helped by a 2% gain in Ethereum, which is now trading just below $3,600. However, these moves have yet to break out of the broader sideways trend that has defined recent weeks.
“Until BTC and ETH reclaim strength with volume,” Enflux added, “the path of least resistance could remain sideways to down.”
Ethereum Gains, But Resistance Near $4K Looms
Ethereum’s modest recovery puts it in sight of the $4,000 mark, a psychological and technical barrier. While today’s 2% uptick offers some relief, analysts warn that failure to breach $4K could result in a swift pullback.
ETH’s recent movements mirror Bitcoin’s struggle: rising on light volume with little confirmation of trend reversal. This pattern underscores a lack of commitment from traders, who remain on the sidelines awaiting clearer signals from either macroeconomic catalysts or stronger price action.
Macro Outlook Adds to Uncertainty
Beyond crypto-specific metrics, global markets are also grappling with uncertainty. Gold prices remain flat after a short rally, as investors weigh the possibility of U.S. Federal Reserve rate cuts later this year. Inflation pressures have cooled, but conflicting economic signals have left traders without a firm narrative.
In crypto, that lack of clarity has created what some analysts call a “chop zone”—a period of sideways trading marked by weak conviction, erratic volume, and no definitive directional trend.
Will $110K Hold, or Is Another Flush Coming?
With Bitcoin hovering in a low-liquidity range, market participants are watching closely to see whether a base can form around $115K or whether sellers will regain control and push prices back to the $110K level. The outcome may depend on whether short-term buyers continue to absorb supply or step aside.
Glassnode analysts believe the zone between $110K and $116K could define Bitcoin’s medium-term trend. A successful consolidation within this zone could prepare the asset for a new rally, while a break below $110K could trigger more aggressive selling.
For now, BTC’s post-ATH drift remains unresolved. The bulls have yet to prove they can support higher prices with sustained volume, while bears have not fully taken advantage of the weakness either. That tension leaves Bitcoin in a delicate state—balanced on a knife edge within the BTC low-liquidity zone.
