BTC Remains in Low-Liquidity Zone Following Post-ATH Correction
Market Overview
Bitcoin (BTC) is stable around $115K, up 1% in 24 hours. The market is experiencing a post-all-time-high correction with low volume and weak conviction.
Key observations include:
- BTC has entered an “air gap”, a low-liquidity zone between $110K and $116K.
- 120,000 BTC were acquired on the dip, but prices struggle to reclaim resistance levels, particularly ~$116.9K.
- Short-term holder profitability decreased from 100% to 70%, typical for mid-phase bull markets.
- ETF flows have turned negative, with a -1.5K BTC outflow, the largest since April.
- Funding rates in derivatives markets reflect reduced leverage and caution among speculators.
Market Sentiment
Market maker Enflux describes crypto markets as fragile. Major cryptocurrencies like BTC and ETH are struggling for confidence. Enflux states:
- “Until BTC and ETH reclaim strength with volume, the path of least resistance could remain sideways to down.”
- The market's next move depends on buyer activity within the low-volume zone.
Market Movers
- BTC: Potential supply shock from drying OTC reserves and corporate accumulation may influence price action after dips below $110K.
- ETH: Faces significant sell pressure at $419 million while retesting resistance near $4,000, raising risks of a 25-35% decline by September.
- Gold: Prices flat at $3,372.11 after taking profits and considering Fed rate cut odds.
- Nikkei 225: Mixed opening in Asia-Pacific markets; Japan’s Nikkei 225 remains flat amid U.S. semiconductor tariff threats.
- S&P 500: U.S. stock futures flat as traders respond to new semiconductor tariffs, with S&P 500 still up 1.7% for the week.