Bitcoin – Why BTC’s ‘air gap’ at $117K could spark major market shifts

Key takeaways

Volatility across Bitcoin, equities, and gold is nearing historic lows, making way for major market moves. Bitcoin’s price structure and rising BTC/gasoline ratio hint at a potential inflection point. If current support levels break, sharp cross-asset volatility could follow.

Markets are calm, but history says that never lasts.

Volatility across Bitcoin [BTC], U.S. equities, and gold has sunk to multi-month lows, making way for a potential storm.

Bitcoin, in particular, has carved out an on-chain “air gap” during its sprint from $110K to $117K, now serving as a critical support zone beneath its ATH.

And with the BTC-to-gasoline ratio hitting fresh highs, even oil traders are starting to pay attention.

Is this the calm before a major cross-asset disruption? Signs are pointing that way.

Volatility compression nears a breaking point

Volatility across major asset classes is drying up… and that’s rarely a sign of stability.

Source: Alphractal

According to Alphractal data, the 30-day volatility of Bitcoin, the S&P 500, and gold is now hovering near multi-month lows, imitating past periods of calm that preceded major market swings.

This kind of “volatility compression” often acts like a coiled spring, especially when observed simultaneously across asset classes. With all three now in lockstep, the odds of an imminent cross-asset shake-up are rising fast.

Bitcoin’s oil signals are flashing again

A lesser-watched but surprisingly telling chart is lighting up again: the Bitcoin-to-gasoline ratio.

For the third time since 2017, this ratio is pressing against a long-term ascending trendline; levels that previously marked major local tops.

Source: X

With Bitcoin recently outperforming energy markets and gasoline prices remaining sticky, the breakout has caught the attention of commodities traders and crypto analysts alike.

The ratio’s movement suggests a potential inflection point: either Bitcoin pushes decisively through this resistance, or history repeats, and we see a sharp reversal.

Gaps don’t stay quiet forever

Bitcoin’s vertical rally from $110K to $117K left behind a classic “air gap” on-chain; a zone with little accumulation and low historical trading density.

These gaps often act like thin ice: sturdy while the price stays above, but fragile under stress.

Source: Glassnode

As BTC continues to trade near its ATH, this gap now doubles as a critical support level. If it fails, history suggests it could evolve into a bottoming range.

In a market bracing for volatility, this overlooked zone may be the first fault line to watch.