Bitcoin faces a huge 'supply gap' in the $70000 to $80000 range, and if it falls below $80000, it may accelerate its decline

According to BlockBeats, on March 17th, the rapid rise in Bitcoin prices in November last year caused a supply gap in the range of $70000 to $80000. According to Glassnode data, approximately 20% of Bitcoin supply is currently in a loss making state. If Bitcoin's current pullback falls below $80000, it may accelerate its decline, as Glassnode's UTXO Implementation Price Distribution (URPD) chart shows a so-called 'supply gap'. This indicator tracks the price point of the last movement of the existing Bitcoin UTXO. Each bar chart represents the number of bitcoins traded last within a specific price range. The data undergoes entity adjustment, which means assigning an average purchase price to each entity and categorizing their entire balance accordingly. Simply put, the total number of traders who purchase Bitcoin in the $70000 to $80000 price range may be much lower than the levels in other price ranges. Therefore, if the price falls below $80000, few holders may buy on dips at their purchase cost, so there is almost no support above the historical high of $73000 set in March 2024.