Bitcoin (BTC) prices have fallen from the all-time high of $109,000, which reached January 20th, so if they fall below $75,000 twice in the past week it could be even more volatile.
After the biggest cryptocurrency surged after President Donald Trump’s election victory in November, it showed what GlassNode created between $70,000 and $80,000 as “air pockets.”
The biggest cryptocurrency rose from $70,000 after the vote to over $100,000. Historically, when Bitcoins gather together without consolidation at the key level, they often go back to retest them later. This lack of price interaction means low supply, increasing the likelihood of rapid movement.
One way to demonstrate this is to look at the unused transaction output (UTXO) in Bitcoin. This represents the amount of Bitcoin received, but the amount that is unused. This means that it can be used in transactions.
UTXO has achieved the price that the existing Bitcoin UTXOS moved last. This version uses the average acquisition price of each owner to classify the perfect balance into a suitable price bucket.
Bitcoin is likely to need to integrate within this “air pocket” range (higher or lower) to establish a sustainable movement. As shown in the chart, less than 2% of the total supply is here, suggesting that price action in this region may remain volatile due to a supply shortage.
Approximately 25% of Bitcoin supply is currently lost primarily by short-term holders who have purchased within the past 155 days.
