CMC News

$BTC Price Tests Short-Term Holder Confidence in Air-Gap Zone Below $116K

$BTC’s retreat below $116,000 has pushed the market into a thinly traded region with reduced leverage and falling profitability metrics.

After hitting $123,000 in mid-July, $BTC dropped to $112,000 on July 31, breaking through a key supply cluster.

Short-term holders now face an average cost basis of around $116,900, creating near-term resistance as their profit share fell from 100% to 70%.

#SpotETF demand weakened with four consecutive days of outflows, marking the largest withdrawal streak since April.

U.S. #BitcoinETFs saw a 1,500 $BTC outflow on Aug. 5 before returning to $91.5 million in net inflows Wednesday.

Leverage has deflated as funding rates on perpetual swaps dropped below 0.10%, showing traders' reluctance to pay premiums for new long positions.

Glassnode characterizes current conditions as post-ATH indecisiveness, with neither capitulation nor confident #rebound signals present.

Roughly 120,000 $BTC changed hands during the dip, suggesting opportunistic buying despite the failure to reclaim lost support levels.

Sustained weakness below $116,000 could erode short-term holder confidence and invite a test of $110,000 support.

A decisive move outside the current range could determine the next major trend direction for the cryptocurrency.