The Bitcoin (BTC) price is likely to be more unstable after dipping under $ 75,000 twice in the last week as it raises its fall from all the time of $ 109,000 reached on January 20.
It has taken it into what Glassnode shows as an “air pocket” between $ 70,000 and $ 80,000 created after the biggest cryptocurrency rose after President Donald Trump’s election victory in November.
The largest cryptocurrency rose to over $ 100,000 from $ 70,000 after the vote without ever revising its starting point. Historically, when Bitcoin is gathered without consolidating at key levels, it often returns to re -test them later. This lack of price interaction involves low supply, increasing the likelihood of rapid movement.
One way to show this is to look at Bitcoin’s Unspent Transaction Output (UTXO), which represents the amount of Bitcoin received but unused, ie. still available for use in transactions.
Utxo Realized Price Distribution (URPD) shows the prices where existing Bitcoin Utxos last moved. In this version, each proprietor’s average acquisition price is used to sort their full balance in the appropriate price bucket.
To establish a sustainable feature – either higher or lower – Bitcoin is likely to consolidate within this “air pocket” area. As illustrated in the diagram, less than 2% of the total supply is here, suggesting that the price action in this region may remain unstable due to the lack of supply.
About 25% of Bitcoin’s supply is currently kept at a loss, primarily by short -lived holders who bought within the last 155 days.
