Asia Morning Briefing: Bitcoin Enters Low-Liquidity ‘Air Gap’ as It Drifts Below All-Time High

Bitcoin Stuck in Low-Liquidity ‘Air Gap’ Amid Ongoing Post-All-Time-High Correction

Bitcoin (BTC) is trading near $115,000 early Thursday in Asia, up about 1% in the past 24 hours, as the market continues to digest the recent all-time high (ATH) correction amid thin trading volumes.

Glassnode data reveals BTC has entered a so-called “air gap” — a low-liquidity zone between $110,000 and $116,000 — after dropping below a key support cluster where short-term holders previously found stability.

Such low-volume zones can either become a platform for accumulation or a trap leading to further losses if buying interest doesn’t return.

“The market is essentially searching for solid footing,” Glassnode analysts noted, identifying the range from $110,000 (previous ATH) to $116,000 (recent buyer entry level) as a critical battleground.

While opportunistic buyers have acquired approximately 120,000 BTC during the dip, prices have yet to break convincingly above resistance, particularly near $116,900 — a key threshold tied to short-term holder activity.

Short-term holder profitability has declined from 100% to roughly 70%, typical of a mid-bull market phase. However, without fresh inflows, investor sentiment may weaken rapidly. Bitcoin ETF flows have turned negative with a 1,500 BTC outflow this week—the largest since April. Meanwhile, derivative market funding rates have eased, signaling cautious trader behavior.

Market maker Enflux described the environment as fragile: “Despite some relief in altcoins, major coins like BTC and ETH are struggling to build confidence. Volume remains light, and the broader trend looks weak.”

Ethereum (ETH) gained 2% over 24 hours, trading just below $3,600. The CoinDesk 20 Index, tracking a broad range of crypto assets, rose 1.69% to 3,815.22.

Enflux added, “Until BTC and ETH regain momentum with stronger volume, sideways or downward moves seem likely.”

The next market move depends on whether buyers step in to establish a base in this low-liquidity zone or if prices must fall back to $110,000 to reset the trend. Traders remain cautious, and bulls have yet to prove their strength.

Market Highlights:

• Bitcoin: Analysts warn of a potential supply squeeze as OTC desk reserves dry up and corporate buying remains steady, possibly igniting price movement after BTC dips below $110K.
• Ethereum: ETH may have peaked locally amid heavy sell pressure ($419 million, second highest on record) as it tests resistance near $4,000 — a level that previously preceded a 66% crash in late 2024. This raises the risk of a 25–35% decline by September. Polymarket bettors remain split, with 48% betting on a rally to $5,000 despite bearish indicators.
• Gold: Gold’s recent rally paused as traders took profits and factored in rising expectations of Federal Reserve rate cuts, ongoing U.S. trade tensions, and possible Fed leadership changes. Spot gold traded at $3,372.11, down 0.24%.
• Nikkei 225: Asia-Pacific markets opened mixed Thursday; Japan’s Nikkei 225 was flat as investors brushed off new U.S. semiconductor tariff threats.
• S&P 500: U.S. futures were steady Wednesday night amid reactions to new semiconductor tariffs. The S&P 500 remains up 1.7% for the week.

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