Categories: Bitcoin Latest News

Bitcoin Faces Massive ‘Supply Gap’ Between $70K and $80K

Bitcoin’s (BTC) ongoing price pullback could accelerate below $80K, as on-chain analysis by Glassnode indicates that the $10K price range beneath this level was marked by weak economic activity late last year.

BTC prices quickly rose from $70K to above $80K in early November after pro crypto Donald Trump won the U.S. Presidential election. As a result, very little BTC changed hands between those levels, leaving a so-called “supply gap,” as evident from Glassnode’s UTXO Realized Price Distribution (URPD) chart.

This metric tracks the price points at which existing bitcoin UTXOs were last moved. Each bar represents the volume of bitcoin that last changed hands within a specific price range. The data is entity-adjusted, meaning it assigns an average purchase price for each entity, categorizing its full balance accordingly.

Bitcoin’s rapid surge from the mid-$60K to over $100K following Donald Trump’s U.S. election victory left little supply accumulation in the $70K to $80K range, as it traded only for a few days between these levels.

In other words, the total number of traders with acquisition prices between $70K and $80K is likely to be far less than at other levels. So, a move below $80K will likely see very little bargain hunting from holders looking to buy more at their acquisition costs, thus ensuring little support before $73K, the all time high set in March 2024.

Besides, as bitcoin currently consolidates above $80K, approximately 20% of the total supply is currently at a loss—meaning these holdings were purchased above the current price of $83K. These wallets could add to the selling pressure below $80K, leading to a quick slide.

Glassnode data shows that approximately 100,000 BTC have been sold by short-term holders due to the price correction. While the lack of supply and current tepid demand has already contributed to bitcoin’s 30% pullback from its all-time high of $108K.

Read MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]

Recent Posts

Bitcoin’s Unstoppable Rise: A Saint Patrick’s Day Price History

Bitcoin Magazine Bitcoin’s Unstoppable Rise: A Saint Patrick’s Day Price History From $5 to $83,000…

1 hour ago

Developer Consensus May Be Converging on a Bitcoin Soft Fork Proposal: Blockspace

Grassroots support for two bitcoin improvement proposals (BIP) appears to be emerging for Bitcoin’s next…

2 hours ago

Bitcoin Network Hashrate Inched Higher in March as Mining Economics Weakened: JPMorgan

The Bitcoin network hashrate rose 2 exashashes per second (EH/s) in the first two weeks…

3 hours ago

Bitcoin, S&P 500 Take Backseat to Stagflation Trade as Trump Tariffs Threaten to Derail Growth

No one dared to speak about the potential for stagflation, the dreaded word representing portmanteau…

4 hours ago

Best Meme Coins to Buy as Whale Activity Suggests Changing Tides – From $BTC to Tokens Like $MELANIA

The best meme coins and Bitcoin price action collided in dramatic fashion this weekend. A…

4 hours ago

South Korea Dismisses Establishing Strategic Bitcoin Reserve

Bitcoin Magazine South Korea Dismisses Establishing Strategic Bitcoin Reserve The Bank of Korea (BOK) has…

4 hours ago