Bitcoin (BTC) is consolidating in a thin-liquidity “air gap” between $110,000 and $116,000 as the market waits for new demand to establish a firm base.

According to an Aug. 6 report by Glassnode, BTC’s price pulled back to $113,000 after setting a new all-time high above $123,000 in mid-July. This price movement left many recent buyers underwater and created a supply cluster with a cost basis above $116,000. 

The lower bound of that cluster repeatedly supported rebounds until July 31, when BTC broke lower into the air gap. Historically, such low-liquidity ranges can morph into accumulation zones as buyers step in at a perceived discount.

The report compared entity-adjusted URPD snapshots from July 31 and Aug. 4 to gauge dip-buying. 

Following a rebound from around $112,000, investors acquired roughly 120,000 BTC and lifted spot prices back above $114,000, evidencing opportunistic demand. 

Even so, the $110,000-$116,000 band remains light in aggregate supply. Time spent accumulating here could potentially build a platform for the next move higher.

New resistance, metrics not overheated

The rally has yet to reclaim the cost basis of holders with amounts of one week and one month old, now with a decisive resistance near $116,900. A sustained break above would signal demand regaining control, while a failure raises the risk of a deeper test of the previous all-time high range around $110,000.

According to the report, price sits in a “warm” but not overheated regime and remains above the short-term holder (STH) cost basis at $106,000. This price level is a threshold that has historically divided near-term bullish and bearish phases in Bitcoin bull markets.

STH supply in profit has slipped from 100% to 70% during the drawdown, consistent with the midline of prior bull cycles. The share of STH spent volume in profit has cooled to 45%, below neutral, implying a balanced market with neither side dominant.

ETF flows and leverage

On Aug. 5, spot Bitcoin exchange-traded funds (ETFs) in the US saw a 1,500 BTC outflow, the largest bout of ETF sell-side pressure since April 2025. Historically, these episodes have been brief, but monitoring persistence is key. 

In derivatives, perpetual funding rates have slipped back below 0.1%, a neutral zone that indicates cooling speculative appetite and tempered upside conviction in the near term.

Taken together, Bitcoin appears locked in the $110,000-$116,000 corridor, accumulating supply and waiting for demand sufficient to retake $116,900 and reassert the uptrend.

Mentioned in this article

NBA legend Shaquille O’Neal has settled a lawsuit that arose from his endorsement of the failed crypto exchange FTX.

The former professional basketball player is among the co-defendants in a case against FTX founder Sam Bankman-Fried, who is now behind bars for misappropriating over $8 billion in customer funds that led to the collapse of the exchange.

The class action complaint filed by Oklahoma resident Edwin Garrison in 2022 accused the celebrities and athletes who promoted FTX of engaging in deceptive practices and failing to perform due diligence prior to promoting the now-defunct trading platform.

The other defendants named in the case also include retired NFL quarterback Tom Brady and his ex-wife, model Gisele Bündchen, NBA player Stephen Curry, MLB pitcher Shohei Ohtani, NFL quarterback Trevor Lawrence and Shark Tank star and investor Kevin O’Leary.

O’Neal, who court documents indicate received nearly $750,000 for endorsing FTX, is now close to resolving the case.

In a joint notice of settlement agreement filed on April 23rd, the counsels representing O’Neal and the plaintiffs inform the U.S. District Court, Southern District of Florida, that the two parties have agreed to an amicable resolution of the suit.

The filing did not disclose the settlement amount, and the agreement is still subject to court approval.

“Pursuant to the Class-Action Settlement Agreement the Parties executed on April 1, 2025, the terms of the agreement will remain confidential until Plaintiffs file a motion seeking preliminary approval of the settlement.”

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The dust is settling after President Trump’s “Liberation Day” announcement, during which he signed an executive order imposing mutual tariffs on global trade partners. The Trump tariffs news heated debates everywhere on the trade war and its power to disrupt the ongoing financial market bull run.

Yesterday, Trump declared “Liberation Day,” unveiling a 10% baseline tariff on all imports, with higher rates of 34% in China and 20% in the EU.

These tariffs aim to address trade imbalances, but markets are rattling as a consequence. The bull run, which was then in a euphoric phase before Trump’s inauguration, is now facing headwinds. Trump and his crypto regulation, once a market booster, are now under scrutiny as tariffs ripple outward.

LIBERATION DAY RECIPROCAL TARIFFS pic.twitter.com/ODckbUWKvO

— The White House (@WhiteHouse) April 2, 2025

And Trump Trade War Begins on Liberation Day

US trading partners, including the EU and China, have also promised retaliation, escalating tensions. Stock markets dipped, with the US dollar hitting a six-month low. As a result, crypto markets saw a $341 billion wipeout in 24 hours.

Economists warn that these tariffs will stir inflation, raising costs for US consumers and businesses reliant on imports. The US manufacturing industry may see a domestic boost, as Trump intends, but supply chain disruptions are at risk. Big Tech firms like Apple and Nvidia are vowing on US investments after Trump signed his executive order, yet the market sentiment remains cautious amid this trade war policy shift.

CHIEF TARIFF OFFICER! pic.twitter.com/H1F4Km9v79

— Crypto King.eth.sol (@cryptosanthoshK) April 2, 2025

The bull run, a hallmark of recent economic growth, now teeters on uncertainty. The tariffs’ scale could echo the 1930s Smoot-Hawley fallout, which deepened a global downturn.

While Trump might open to negotiation, a prolonged trade war conflict is predicted, threatening market gains and investor confidence.

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dropped from $88,000 to $83,000 post-announcement, with trading volume spiking to over 46%. Even though Trump tariffs don’t directly target crypto assets, the economic instability they trigger can dampen crypto growth, which usually goes side by side with the US stock market.

Businesses are now bracing for impact; US chipmakers and retailers face higher input costs, while oil and gas firms report immediate price hikes on materials. Exemptions for pharmaceuticals and copper offer some relief, but the 25% auto tariff adds pressure on an already strained sector. This automobile sector is expected to hit consumers the hardest.

Canada and Mexico dodged the reciprocal tariffs but not the 25% duties on goods. India is facing a 26% rate, while Australia’s PM called the 10% tariff illogical.

Did Trump just put a tariff on ETH or something?

— Lady of Crypto (@LadyofCrypto1) April 2, 2025

Eventually, the EU’s planned countermeasures signal a tit-for-tat escalation, complicating the Trump global trade war.

Some argue that the Trump trade war will force fairer trade terms and boost the US economy. Others see it as a gamble that might choke the bull run, with collateral damage to Trump’s crypto momentum. Data also showing 70% of traders expect a crypto bottom by June if trade fears persist.

As “Liberation Day” tariffs aim to reclaim economic destiny, per Trump’s vision, their cost is unfolding in real-time.

But remember, whatever goes down will go up, HODL.

“If Bitcoin breaks 100k, you can bet it will break a million.”– John McAfee

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https://99bitcoins.com/news/dust-settles-over-liberation-day-will-trump-trade-war-kill-the-bull-run/