BTC hovers at $115K; ETF flows turn negative, short-term holder profitability drops

• Bitcoin (BTC) is trading in a low-liquidity “air gap” between $110K and $116K, according to Glassnode.
• The market is “re-finding its footing” after a post-all-time-high correction amidst low volume and weak conviction.
• Spot Bitcoin ETF flows recently turned negative, with a 1,500 BTC outflow marking the largest since April.

Bitcoin is treading water around the $115,000 mark on Thursday morning in Asia, up a modest 1% over the last 24 hours, as the inevitable correction following its recent all-time high continues to unfold amidst low trading volumes and a clear lack of market conviction.

Analysts are now closely watching a low-liquidity zone that could either serve as a new foundation for the next leg up or become a trapdoor for a deeper price drop.

According to on-chain analytics firm Glassnode, Bitcoin has entered what it describes as an “air gap”—a low-liquidity zone between $110,000 and $116,000.

This has occurred after the price broke down from a major supply cluster where short-term holders had previously found significant support. These “air gaps” are areas that typically see very little historical trading activity.

They can either provide an opportunity for new buyers to accumulate positions and build a strong base, or, if demand fails to materialize, they can lead to sharp and swift moves to the downside.

“The market is effectively re-finding its footing,” the Glassnode analysts wrote, framing the range between $110,000 (the prior all-time high) and and 116,000 (the cost basis for recent buyers ) as the new critical battleground.

They noted that while some opportunistic buying has emerged on there cent dip, with approximately 120,000 BTC acquired by new buyers, the price has yet to reclaim key resistance levels convincingly.

A particularly important threshold is the 116,9K level, which marks the entry point for many recent short-term holders.

Cooling sentiment: ETF outflows and reduced leverage

Several indicators point to a cooling of the bullish fervor that recently propelled Bitcoin to its record highs. Short-term holder profitability has dropped from a peak of 100% down to 70%.

While Glassnode frames this as a typical development for a bull market’s mid-phase, they caution that without a fresh wave of capital inflows, this could quickly erode market sentiment.

Indeed, spot Bitcoin ETF flows have recently turned negative, with a 1,500 BTC outflow recorded earlier this week—the largest single-day outflow since April.

At the same time, funding rates in the derivatives market have cooled significantly, a sign of reduced leverage and a more cautious stance among speculative traders.

Market maker Enflux offered a similar take on the current environment. “Crypto markets remain in a fragile holding pattern. Despite some relief in the altcoin space, majors like BTC and ETH are still struggling to inspire confidence,” the firm wrote in a recent client note.

“The broader trend? Heavy legs with more or less light volume.” Enflux concluded, “Until BTC and ETH reclaim strength with volume, the path of least resistance could remain sideways to down.”

The market’s next significant move now likely hinges on whether a new cohort of buyers is willing to step in and build a solid support base within this low-volume “air gap,” or whether another flush down towards the $110,000 level is needed to fully reset the trend.

For now, traders remain cautious, and the bulls are yet to prove they have regained control.

Broader market snapshot

• BTC: While the market navigates this “air gap,” some observers are pointing to a potential, longer-term Bitcoin supply shock.

• This is being driven by reportedly drying up reserves on Over-The-Counter (OTC) desks and steady corporate accumulation, a combination that could “uncork” a major price move after a potential dip below $110,000.

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

• Gold: Gold’s recent rally stalled on Wednesday as traders took profits. The market is currently weighing rising odds of a Federal Reserve rate cut against ongoing U.S. trade tensions and a looming Fed leadership shakeup.

• This has left prices flat after a three-day gain that was driven by signs of economic weakness. Spot gold last traded at $3,372.11, down 0.24% on the day.