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

On March 17th, during the rapid surge in November of last year, the price of Bitcoin created a supply gap in the range of $70,000 to $80,000. According to Glassnode data, currently approximately 20% of the Bitcoin supply is at a loss. If Bitcoin's current pullback drops below $80,000, it may lead to an accelerated decline. Glassnode's Unspent Transaction Output Realized Price Distribution (URPD) chart shows the so-called "supply gap." This indicator follows the price point at which existing Bitcoin UTXOs last moved. Each bar represents the amount of Bitcoin that was last transacted at a specific price range. The data is adjusted for entities, meaning that an average purchase price is assigned to each entity, and all its balance is categorized based on this. In simple terms, the number of traders who purchased Bitcoin in the $70,000 to $80,000 range may be significantly lower than in other price ranges. Therefore, if the price falls below $80,000, few holders are likely to buy the dip at their acquisition cost, resulting in almost no support above the historical high of $73,000 set in March 2024.