Summary

Low liquidity between $70K and $80K may lead to a turbulent market for Bitcoin as supply in this range is notably scarce. The current state suggests heightened volatility following recent price movements.

Key Points

• Less than 2% of Bitcoin’s total supply exists in the $70,000 to $80,000 range, marking it as an “air pocket”.
• Historical trends indicate Bitcoin usually retraces to previously neglected price areas before establishing new trends.
• Currently, about 25% of Bitcoin holders are at a loss.

Market Analysis

Bitcoin (BTC) is predicted to face increased volatility after recently slipping below $75,000, a decline from its peak of $109,000 seen on January 20. This shift places it within an “air pocket” created as prices surged post-Donald Trump’s election victory in November.

Historically, if Bitcoin ascends without stabilizing within critical ranges, it tends to return to these levels later, causing fluctuations.

Current Market Statistic: The UTXO Realized Price Distribution indicates that less than 2% of the Bitcoin supply is located in this price bracket, meaning price swings could be pronounced due to limited availability.

Around 25% of Bitcoin’s supply is presently held at losses, mainly by investors who purchased within the past 155 days.