Bitcoin consolidates between 110,000-116,000 USD! The market is waiting for new demand to trigger the next round of market movement.

Bitcoin (BTC) has recently consolidated in the range of $110,000 to $116,000, with the market entering a "liquidity gap" stage, waiting for a new round of demand to enter. After reaching a historical high of $123,000 in mid-July, BTC pulled back to $113,000, with many investors recently falling into losses, and a cost cluster forming new resistance above $116,000. Glassnode data shows that this range is becoming a key battleground for the Bull vs Bear Battle, and future trends will depend on whether new capital can break through the current bottleneck.

Liquidity gap becomes an accumulation area, opportunity-driven buying is active

Since BTC broke below $116,000 on July 31, the market has entered a low liquidity area. Historical experience shows that such areas often become the main accumulation zones. Glassnode URPD data indicates that around 120,000 BTC buy orders have emerged in the $112,000 area, pushing the spot price back above $114,000, proving that opportunistic funds are still actively entering the market. However, the accumulation supply in the $110,000-$116,000 range is limited, and stronger demand is still needed in the short term to drive the market to break through.

Resistance is evident, short-term indicators are not overheated

Currently, BTC's rebound has not yet broken through the key resistance of 116,900 USD, which is an area of recent investor cost concentration. If it can effectively break through, it will mark a return of demand to a dominant position; otherwise, the price may test the support at 110,000 USD. The average cost for short-term holders (STH) is at 106,000 USD, and the BTC price is above this threshold, indicating that the bull market cycle has not yet ended, but market enthusiasm has cooled.

ETF outflows and cooling in the derivatives market, sentiment is neutral

On August 5, the net outflow of the US spot Bitcoin ETF was 1,500 BTC, reaching a new high since April 2025. Although short-term outflows do not indicate a trend reversal, attention should be paid to long-term capital movements. In the derivatives market, the perpetual contract funding rate has fallen below 0.1%, reflecting a decrease in speculative enthusiasm and a more cautious bullish sentiment.

Short-term consolidation builds momentum, a breakthrough requires new demand to ignite

BTC is currently maintaining in the range of 110,000-116,000 USD, and the market has entered an accumulation period. The short-term Bull vs Bear Battle is balanced, with main funds waiting for new demand to enter. A breakthrough of 116,900 USD will become a key signal for a new round of upward movement. If it fails to break through, it may continue to consolidate or even retest the support below.

Conclusion

Bitcoin is consolidating in the range of $110,000 to $116,000, with the market waiting for new demand to ignite the trend. Short-term investors should closely monitor capital flows and key resistance levels, flexibly adjust strategies, and seize the main upward phase of the next market movement.