Bitcoin Consolidates in $110k–$116k Air Gap as Global Crypto News Heats Up

Introduction
In recent weeks, Bitcoin (BTC) has shown a notable consolidation phase, trading within a thin-liquidity “air gap” between $110,000 and $116,000. The market is cautiously waiting for fresh demand to establish a robust support level. This trend comes on the heels of global crypto news that underscores mixed sentiments among investors.

Key Market Insights

• Bitcoin’s Recent Volatility: BTC reached a historic high above $123,000 in mid-July before pulling back to around $113,000, as reported by Glassnode on Aug. 6.
• Consolidation Explained: Trading in a narrow range indicates market participants are awaiting new demand signals that could redefine the next upward trend.
• Liquidity Concerns: The "air gap" is marked by thin liquidity, meaning even small buy or sell orders can significantly impact price levels.

What This Means for Crypto Investors

• Investors might consider exploring crypto tax tips to optimize their trading strategies during periods of high volatility.
• For those aiming to build a crypto portfolio, this period underscores the importance of diversification and careful risk management.
• Staying updated with global crypto news is crucial, as timely insights can pave the way for potential entry or exit points.

Takeaways
- Bitcoin’s current phase may offer strategic entry points for long-term holders.
- Cautious trading is advised due to the impact of thin liquidity on price movements.
- Emphasizing research and tax planning can enhance portfolio performance in unpredictable markets.