Bitcoin Faces Major 'Supply Gap' in $70K to $80K Range, Potential Accelerated Downside if $80K Is Broken

BlockBeats News, March 17th, the price of Bitcoin caused a supply gap in the $70,000 to $80,000 range during last year's rapid surge in November. According to Glassnode data, currently about 20% of the Bitcoin supply is at a loss.

If Bitcoin's current pullback falls below $80,000, it may accelerate the decline. Glassnode's Unspent Transaction Output 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 transacted last at a specific price range. The data is entity-adjusted, meaning assigning an average purchase price to each entity and categorizing all its balance based on this.

In simple terms, the number of traders who bought Bitcoin in the $70,000 to $80,000 range may be significantly lower than other price ranges. Therefore, if the price falls below $80,000, few holders may buy the dip at their acquisition cost, hence there is almost no support above the historical high of $73,000 set in March 2024.