Bitcoin Falls Below $116K Supply Zone Amid Weak Demand and Liquidity Issues

Glassnode’s weekly report reveals Bitcoin’s adjustment phase following a mid-July all-time high of $122,838, as it breaks below the $116K support amid low liquidity and notable ETF activity.

BTC

Summary

Glassnode’s weekly report indicates that Bitcoin is adjusting after reaching an all-time high of $122,838 in mid-July and declining to around $112K by July 31, breaking below the $116K support level. The report highlights that Bitcoin has entered a low-liquidity 'airgap' zone where short-term holders struggle to regain their cost basis. It also notes significant ETF activity with a 1,500 BTC outflow on August 5 followed by a net inflow of $91.5 million from major providers, and a perpetual futures funding rate below 0.1%, reflecting diminished speculative interest.

Terms & Concepts
  • Supply Zone: A price range where significant selling pressure exists, acting as a resistance level and often capping price gains.
  • Airgap Zone: A low-liquidity market area where limited trading activity makes it difficult for short-term holders to recover their cost basis.
  • Perpetual Swap: A derivative in cryptocurrency markets without an expiration date, allowing continuous trading and exposure to price movements.