Bitcoin is currently consolidating within the $104,000 to $116,000 range, a zone analysts are calling the 'air gap'. This phase follows a wave of absorption by long-term investors.
Bitcoin Consolidation in the 'Air Gap'
Bitcoin is currently consolidating in the $104,000–$116,000 range. This is typical after strong uptrends, as both bulls and bears reassess their positions. The current structure shows buyers are defending the $104K zone, but resistance at $116K remains a challenge.
ETF and Futures Show Decreasing Demand
A key reason for the slower momentum is a noticeable cooling in ETF inflows and futures activity. Earlier in the year, institutional interest drove Bitcoin prices higher, but recent data shows a decrease in that demand. ETF products that once saw aggressive accumulation are now experiencing modest inflows or outflows. Similarly, open interest in Bitcoin futures has leveled off, suggesting traders are waiting for a clearer signal.
Key Levels to Watch: Breakout or Breakdown?
Market participants are closely watching two critical levels: $116K and $93K. A confirmed breakout above $116K could re-ignite bullish sentiment, while a breakdown below $104K into the $93K–$95K region could trigger a deeper correction. Until a clear breakout or breakdown occurs, the market may remain range-bound.
The current consolidation of Bitcoin between $104K and $116K is accompanied by a cooling of demand for ETFs and futures. Market participants should closely monitor key levels that may determine future price behavior.
