Analysis: Bitcoin faces a significant "supply gap" in the range of $70,000 to $80,000, and a drop below $80,000 could accelerate the decline
ChainCatcher message, the rapid rise in Bitcoin prices last November created a supply gap in the range of $70,000 to $80,000. According to Glassnode data, currently about 20% of the Bitcoin supply is in a state of loss.
If Bitcoin currently retraces and falls below $80,000, it may accelerate the decline. Glassnode's UTXO Realized Price Distribution (URPD) chart shows the so-called "supply gap." This indicator tracks the price point at which existing Bitcoin UTXOs last moved. Each bar represents the amount of Bitcoin that was last traded within a specific price range. The data is entity-adjusted, meaning an average purchase price is assigned to each entity, and their entire balance is categorized accordingly.
In simple terms, the number of traders who bought Bitcoin in the $70,000 to $80,000 range may be far lower than in other price ranges. Therefore, if the price falls below $80,000, there may be few holders willing to buy the dip at their purchase cost, resulting in almost no support above the historical high of $73,000 set in March 2024.