Bitcoin faces critical tests at $114K as it comes with the threat of further reverse promotion of low liquidity

Bitcoin (BTC) must hold a level of $114,000 and infringe the narrow $110,000 to $116,000 range to attract investors’ trust and new liquidity.

According to a September 11 report by GlassNode, BTC has been stuck in the “air gap” range after its peak in mid-August. The trading scope is threatening to stall current rally.

In the current landscape, Bitcoin increases pressure from conflicting forces as recent buyers recognize losses while previous investors are making profits.

The report noted three different investor cohorts that form the current price action. The first is the top buyer for the past three months, holding a position of nearly $113,800, while the second consists of Dip-Buyers clustering around $112,800.

The third cohort, consisting of short-term holders over the past six months, is fixed at nearly $108,300, creating defined support and resistance zones.

The rebound from $108,000 exposed underlying market stress. Veteran short-term holders have achieved daily profits of around $189 million, accounting for 79% of all short-term holders’ profits. Investors who bought during the February and May dip have used recent strength to hand out the position usefully.

Realizing losses is focused on recovery

Latest top buyers have exacerbated sales pressures by realizing daily losses of up to $152 million over the same period. This behavior reflects the stress patterns observed in April 2024 and January 2025.

Net income fell as market capitalization share peaked at 0.065% during the August rally. Although current levels remained rising, metrics suggest that influx provides a reduction in support compared to the early phase of the cycle.

The US Spot Exchange Trade Fund (ETF) net flows have fallen sharply since early August, hovering at nearly 500 btc daily compared to the robust influx that fueled previous gatherings.

The slowdown will remove the key pillars of the institutional demand that will drive Bitcoin gains through 2024.

Derivatives that provide stability

We assumed that as spot flows weakened, the derivatives market would be more important in price formation. Volume delta bias was recovered during bounces from $108,000, indicating seller fatigue at major futures venues, including Binance and Bybit.

The three-month annual futures base remains below 10% despite rising prices, reflecting the measurement demand for leverage without speculative surplus.

The volume of permanent futures remains muted, not aggressively speculated, in line with the post-Yopoli market stage.

Option open interest on Bitcoin has reached record highs as derivatives are increasingly used in risk management through protective puts and cover calls. Meanwhile, implicit volatility continued to decline, signaling market maturity and reducing speculative positioning.

With these indicators in the background, a decisive repeat of $114,000 will restore profitability for top buyers and attract fresh institutional capital.

Failure to maintain this level will update the updated pressure on short-term holders, with $108,300 and ultimately $93,000 serving as the key downside targets that the main supply cluster is waiting for.

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