Bitcoin Faces Massive 'Supply Gap' Between $70K and $80K

Bitcoin's (BTC) ongoing terms pullback could accelerate beneath $80K, arsenic on-chain investigation by Glassnode indicates that the $10K terms scope beneath this level was marked by anemic economical enactment precocious past year.

BTC prices rapidly roseate from $70K to supra $80K successful aboriginal November aft pro crypto Donald Trump won the U.S. Presidential election. As a result, precise small BTC changed hands betwixt those levels, leaving a alleged "supply gap," arsenic evident from Glassnode's UTXO Realized Price Distribution (URPD) chart.

This metric tracks the terms points astatine which existing bitcoin UTXOs were past moved. Each barroom represents the measurement of bitcoin that past changed hands wrong a circumstantial terms range. The information is entity-adjusted, meaning it assigns an mean acquisition terms for each entity, categorizing its afloat equilibrium accordingly.

Bitcoin's accelerated surge from the mid-$60K to implicit $100K pursuing Donald Trump's U.S. predetermination triumph near small proviso accumulation successful the $70K to $80K range, arsenic it traded lone for a fewer days betwixt these levels.

In different words, the full fig of traders with acquisition prices betwixt $70K and $80K is apt to beryllium acold little than astatine different levels. So, a determination beneath $80K volition apt spot precise small bargain hunting from holders looking to bargain much astatine their acquisition costs, frankincense ensuring small enactment earlier $73K, the each clip precocious acceptable successful March 2024.

Besides, arsenic bitcoin presently consolidates supra $80K, astir 20% of the full proviso is presently astatine a loss—meaning these holdings were purchased supra the existent terms of $83K. These wallets could adhd to the selling unit beneath $80K, starring to a speedy slide.

Glassnode information shows that astir 100,000 BTC person been sold by short-term holders owed to the terms correction. While the deficiency of proviso and existent tepid request has already contributed to bitcoin’s 30% pullback from its all-time precocious of $108K.