Bitcoin’s Supply Gap: Analyzing the Impact of Price Movements Between $70,000 and $80,000

The recent analysis by COINOTAG highlights a critical price phenomenon within the Bitcoin market. As observed on March 17th, a significant supply gap emerged during last year’s meteoric rise, particularly in the $70,000 to $80,000 band. Data from Glassnode reveals that approximately 20% of Bitcoin’s supply is currently at a loss, indicating potential market volatility. Should Bitcoin’s value dip below $80,000, we might witness an intensified downward trend. The Unspent Transaction Output Realized Price Distribution (URPD) chart from Glassnode illustrates this supply gap clearly, offering insight into past transaction prices of Bitcoin. This metric tracks the last movement of Bitcoin UTXOs and reflects that trading activity in the $70,000 to $80,000 segment is considerably less than in other ranges. Consequently, a decline beneath $80,000 may deter holders from purchasing more, as support appears weak above the previous all-time high of $73,000 established in March 2024.