Bitcoin Struggles in Low-Liquidity ‘Air Gap’ as Post-All-Time-High Correction Continues

Bitcoin (BTC) is hovering near $115,000 early Thursday in Asia, showing a modest 1% gain over the past 24 hours amid ongoing post-all-time-high correction and subdued trading volume.

Data from Glassnode reveals that BTC has slipped into what analysts call an “air gap” — a low-liquidity zone ranging from $110,000 to $116,000. This follows a breakdown below a key supply cluster where short-term holders had previously found support.

Such low-activity zones often act as either accumulation bases or dangerous traps leading to further declines if demand doesn’t pick up.

“The market is effectively trying to regain its footing,” said Glassnode analysts, highlighting the $110,000 (previous all-time high) to $116,000 (recent buyer cost basis) range as the new critical battleground.

While opportunistic buyers have stepped in, acquiring roughly 120,000 BTC during the dip, prices have yet to reclaim crucial resistance levels, especially the $116,900 mark linked to recent short-term holder entries.

Short-term holder profitability has fallen from 100% to around 70%, a pattern typical in the middle stages of a bull market. However, without renewed inflows, sentiment may quickly sour. Notably, Bitcoin ETF flows turned negative this week, with a 1,500 BTC outflow—the largest since April. Simultaneously, derivative funding rates have cooled, signaling reduced leverage and caution among speculators.

Market maker Enflux echoed these concerns: “Crypto markets remain in a fragile holding pattern. Despite some gains in altcoins, majors like BTC and ETH are struggling to inspire confidence. The broader trend is weak, with light volume.”

Ethereum (ETH) is up 2% over 24 hours, trading just under $3,600. The CoinDesk 20 Index, which tracks a broad range of cryptocurrencies, rose 1.69% to 3,815.22.

Enflux added, “Until BTC and ETH regain strength with solid volume, the path of least resistance is likely sideways or downward.”

The market’s next direction depends on whether buyers can establish a base in this low-volume zone or if another drop toward $110,000 is necessary to reset momentum. For now, traders remain cautious and bullish conviction is unproven.

Market Movers:

Bitcoin: Some market watchers predict a potential supply shock as OTC desk reserves dwindle and corporate accumulation steadies, which could trigger strong BTC price movement after dipping below $110K.

Ethereum: ETH may have hit a local peak amid $419 million in sell pressure—the second-highest ever—as it tests resistance near $4,000. This zone previously preceded a 66% crash in late 2024, raising fears of a 25–35% decline by September. However, Polymarket bettors remain divided, with 48% anticipating a rally to $5,000 despite bearish signals.

Gold: After a three-day rally fueled by economic concerns, gold prices stalled Wednesday as traders booked profits and weighed increasing odds of Fed rate cuts, ongoing U.S. trade tensions, and a potential Fed leadership shakeup. Spot gold last traded at $3,372.11, down 0.24% on the day.

Nikkei 225: Asia-Pacific markets opened mixed Thursday. Japan’s Nikkei 225 was flat as investors shrugged off new U.S. semiconductor tariff threats.

S&P 500: U.S. stock futures held steady Wednesday night amid investor reactions to Trump’s new semiconductor tariffs. The S&P 500 remains up 1.7% for the week.