Asia Morning Briefing: Bitcoin Slips Into Low-Liquidity ‘Air Gap’ as Post-ATH Drift Continues
Bitcoin (BTC) is currently trading around $115,000, experiencing a post-all-time-high correction within a low-liquidity zone between $110,000 and $116,000. This “air gap,” as identified by Glassnode, shows little trading activity and presents uncertainty regarding future price movement. While some opportunistic buying has occurred, with 120,000 BTC acquired on the dip, prices haven’t decisively reclaimed resistance levels, particularly the $116,900 mark. Short-term holder profitability has decreased from 100% to 70%, a typical mid-phase bull market occurrence, but sustained price increases require further inflows. Negative ETF flows, with a 1,500 BTC outflow—the largest since April—and cooled funding rates in the derivatives market, indicate reduced leverage and a cautious investor sentiment.
Market makers share a similar perspective, describing the crypto market as being in a fragile holding pattern. BTC and ETH struggle to inspire confidence, with volume remaining low. The CoinDesk 20 Index, however, gained 1.69%, reaching 3,815.22. The market’s next direction depends on whether buyers establish a base within the low-volume zone or if a further price drop toward $110,000 is needed to reset the trend. Currently, traders maintain caution.
Potential scenarios include a Bitcoin supply shock due to dwindling OTC desk reserves and corporate accumulation, possibly triggering price action after a drop below $110,000. Ethereum (ETH), showing signs of a potential local top with record sell pressure, faces a key resistance zone near $4,000, raising the risk of a significant decline. Gold’s recent rally stalled due to profit-taking and concerns regarding rising Fed rate cut odds, trade tensions, and a potential Fed leadership change.
In other crypto news, the SEC’s approval of liquid staking is celebrated by industry leaders, paving the way for institutional adoption. A partial verdict found Roman Storm guilty of unlicensed money transmitting conspiracy. Trump Media is testing its “Truth Search” feature using Perplexity AI. Asia-Pacific markets opened mixed, with Japan’s Nikkei 225 remaining flat despite new U.S. semiconductor tariff threats. U.S. stock futures were flat, with the S&P 500 showing a weekly gain of 1.7%.
