Bitcoin (BTC) is consolidating in a thin-liquidity “air gap” between $110,000 and $116,000 as the market waits for new demand to establish a firm base.
According to an Aug. 6 report by Glassnode, BTC’s price pulled back to $113,000 after setting a new all-time high above $123,000 in mid-July. This price movement left many recent buyers underwater and created a supply cluster with a cost basis above $116,000.
The lower bound of that cluster repeatedly supported rebounds until July 31, when BTC broke lower into the air gap. Historically, such low-liquidity ranges can morph into accumulation zones as buyers step in at a perceived discount.
The report compared entity-adjusted URPD snapshots from July 31 and Aug. 4 to gauge dip-buying.
Following a rebound from around $112,000, investors acquired roughly 120,000 BTC and lifted spot prices back above $114,000, evidencing opportunistic demand.
Even so, the $110,000-$116,000 band remains light in aggregate supply. Time spent accumulating here could potentially build a platform for the next move higher.
New resistance, metrics not overheated
The rally has yet to reclaim the cost basis of holders with amounts of one week and one month old, now with a decisive resistance near $116,900. A sustained break above would signal demand regaining control, while a failure raises the risk of a deeper test of the previous all-time high range around $110,000.
According to the report, price sits in a “warm” but not overheated regime and remains above the short-term holder (STH) cost basis at $106,000. This price level is a threshold that has historically divided near-term bullish and bearish phases in Bitcoin bull markets.
STH supply in profit has slipped from 100% to 70% during the drawdown, consistent with the midline of prior bull cycles. The share of STH spent volume in profit has cooled to 45%, below neutral, implying a balanced market with neither side dominant.
ETF flows and leverage
On Aug. 5, spot Bitcoin exchange-traded funds (ETFs) in the US saw a 1,500 BTC outflow, the largest bout of ETF sell-side pressure since April 2025. Historically, these episodes have been brief, but monitoring persistence is key.
In derivatives, perpetual funding rates have slipped back below 0.1%, a neutral zone that indicates cooling speculative appetite and tempered upside conviction in the near term.
Taken together, Bitcoin appears locked in the $110,000-$116,000 corridor, accumulating supply and waiting for demand sufficient to retake $116,900 and reassert the uptrend.