Asia Morning Briefing: Bitcoin Dips into a Low-Liquidity ‘Air Gap’ Amid Post-All-Time High Slump

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

Bitcoin (BTC) is hovering around $115,000 early Thursday in Asia, up about 1% in the past 24 hours, amid a continued correction following its recent all-time high. Trading volumes remain low, and market confidence is still fragile.

According to Glassnode, BTC has slipped into an “air gap” — a low-liquidity zone between $110,000 and $116,000 — after falling below a key support cluster that had previously offered stability to short-term holders.

These zones typically experience limited trading activity and can either become a base for accumulation or a trapdoor leading to further declines if buying interest doesn’t return.

“The market is essentially trying to regain footing,” Glassnode analysts noted, describing the range from $110,000 (the prior ATH) to $116,000 (recent buyer cost basis) as the new battleground.

While opportunistic buyers have acquired approximately 120,000 BTC during the dip, prices have yet to break above important resistance levels, particularly the $116,900 mark tied to short-term holder entries.

Profitability among short-term holders has dropped from 100% to around 70%, a typical pattern during the mid-phase of a bull market. However, without new inflows, sentiment could deteriorate quickly. Bitcoin ETFs saw a net outflow of 1,500 BTC this week — the largest since April — and derivative funding rates have cooled, indicating reduced leverage and cautious trader behavior.

Market maker Enflux highlighted the fragile state of the market: “Despite some relief in altcoins, major cryptocurrencies like BTC and ETH struggle to inspire confidence amid light trading volumes.”

Ethereum (ETH) has gained 2% in the last 24 hours, trading just below $3,600. The CoinDesk 20 Index, which tracks a broad basket of crypto assets, rose 1.69% to 3,815.22.

Enflux added, “Until BTC and ETH regain momentum with stronger volume, the likely path remains sideways or downward.”

The next move hinges on whether buyers step up to build a base in this low-volume zone or if prices retreat toward $110,000 to reset the trend. Traders remain cautious, and bullish conviction has yet to take hold.

Market Highlights:

• Bitcoin: Analysts warn of a possible supply squeeze as OTC desk reserves dry up and corporate accumulation remains steady, which could trigger renewed price action if BTC falls below $110,000.
• Ethereum: ETH might have formed a local top amid $419 million in sell pressure — its second-highest ever — near $4,000 resistance. This zone previously preceded a 66% drop in late 2024, raising concerns of a 25–35% decline by September. Polymarket bettors are split, with 48% expecting a rally to $5,000 despite bearish signs.
• Gold: After a three-day gain driven by economic concerns, gold’s rally stalled as traders booked profits amid rising expectations for Fed rate cuts, ongoing U.S. trade tensions, and potential Fed leadership changes. Spot gold last traded at $3,372.11, down 0.24%.
• Nikkei 225: Asia-Pacific markets opened mixed Thursday, with Japan’s Nikkei 225 flat as investors shrugged off new U.S. semiconductor tariff threats.
• S&P 500: U.S. stock futures remained steady Wednesday night amid reactions to new semiconductor tariffs. The S&P 500 is still up 1.7% for the week.