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Bitcoin (BTC) is currently stabilizing within a narrow liquidity “air gap” ranging from $110,000 to $116,000 as the market anticipates new demand to form a solid foundation.
As per an Aug. 6 report by Glassnode, BTC’s value retraced to $113,000 after reaching a new all-time peak exceeding $123,000 in mid-July. This price fluctuation left numerous recent purchasers at a loss and resulted in a supply cluster with a cost basis above $116,000.
The lower limit of this cluster consistently provided support for rebounds until July 31, when BTC fell into the air gap. Historically, such low-liquidity areas can evolve into accumulation zones as buyers enter at what they perceive to be a discount.
The report analyzed entity-adjusted URPD snapshots from July 31 and Aug. 4 to assess dip-buying activity.
Image: Glassnode
After a rebound from approximately $112,000, investors purchased around 120,000 BTC, pushing spot prices back above $114,000, indicating opportunistic demand.
Nonetheless, the $110,000-$116,000 range continues to exhibit low aggregate supply. Time spent accumulating in this area could potentially establish a base for the next upward movement.
New resistance, metrics not overheated
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The rally has not yet reclaimed the cost basis of holders with assets aged one week and one month, now facing a significant resistance near $116,900. A sustained breakthrough above this level would indicate a resurgence of demand, while a failure could increase the likelihood of a deeper test of the previous all-time high range around $110,000.
The report states that the price is in a “warm” but not overheated state, remaining above the short-term holder (STH) cost basis at $106,000. This price point has historically marked the division between near-term bullish and bearish phases in Bitcoin bull markets.
Image: Glassnode
The proportion of STH supply in profit has decreased from 100% to 70% during the drawdown, aligning with the midline of previous bull cycles. The percentage of STH spent volume in profit has cooled to 45%, falling below neutral, suggesting a balanced market without a dominant side.
ETF flows and leverage
On Aug. 5, spot Bitcoin exchange-traded funds (ETFs) in the US experienced an outflow of 1,500 BTC, marking the largest instance of ETF sell-side pressure since April 2025. Historically, these occurrences have been short-lived, but it is essential to monitor their persistence.
In the derivatives market, perpetual funding rates have dipped back below 0.1%, entering a neutral zone that reflects a cooling speculative appetite and reduced upside conviction in the short term.
Overall, Bitcoin appears to be confined within the $110,000-$116,000 range, accumulating supply while awaiting sufficient demand to reclaim $116,900 and reaffirm the upward trend.
The post Bitcoin settles into $110k–$116k ‘air gap’ as market awaits fresh demand appeared first on CryptoSlate.
