Research indicates that investment interest in Bitcoin has increased, as evidenced by buying activity and profit realization.
Buyers Enter Near $112,000
According to analytics firm Glassnode, approximately 120,000 BTC were bought as Bitcoin recovered from $112,000 to $116,000. This buying occurred during the market rebound, where traders capitalized on lower price points.
Despite this activity, the $110,000 to $116,000 zone still exhibits low on-chain volume. Analysts labeled this area as an 'air gap,’ where fewer coins have previously changed hands. Without further buying, this zone may remain fragile if price stays trapped.
Whales Lock In Profits
Analyst Ali Martinez reported that long-term holders realized approximately $44 million in profits over two days, coinciding with Bitcoin's recovery above $114,000.
Notably, charts indicate profit levels were inconsistent throughout July. The sudden spike in realized profits suggests some holders opted to exit during short-term market strength. At press time, Bitcoin was holding at around $116,100 after a 1.2% change over the last 24 hours. Sellers attempted to push it lower, but buyers upheld the price above key support.
Market Conditions and Liquidity
Analyst ZYN noted that Bitcoin reacts to global money supply, while altcoins are more influenced by US liquidity. US money growth is currently rising at 1.09% year-over-year, the fastest rate since Q3 2024.
The Treasury is expected to issue more short-term debt, and the Federal Reserve may also lower interest rates two or three times before year-end. These factors could support broader participation in crypto, especially in altcoins, if conditions remain on track.
Currently, there is growing interest in Bitcoin amid light liquidity conditions, but further purchases are needed to strengthen support zones and create favorable conditions for continued growth.
