Glassnode Warning: Bitcoin Supply Gap Could Fuel a Price Plunge

Bitcoin is experiencing a serious supply shortfall in the range of $70,000 to $80,000, an area with hardly any trading volume throughout history, according to reports from Glassnode’s UTXO Realized Price Distribution (URPD) chart.

This gap came from a sharp price surge in November 2024, likely driven by Trump’s election victory, leaving few bitcoins transacted at these levels and scarce support if prices decline. 

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As of 11:31 AM UTC, Bitcoin is trading at approximately $83,543, following a 0.88% increase in price in the last 24 hours, keeping traders vigilant as it moves closer to its vulnerable zone.

Bitcoin Price Plunge Looms as BTC Nears Breaking Point

A drop below $80,000 could send BTC crashing down to $73,000—a prior high from March 2024—with little buying interest to break the fall in the $70,000-$80,000 range.

The absence of price history in the gap is due to low UTXO density, indicating few holders acquired coins at these levels, naturally weakening the support levels.

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Market pressure is increasing: 20% of Bitcoin’s supply is currently at a loss, held by those who bought above $83,000, while short-term holders have sold roughly 100,000 BTC during a recent pullback.

With Bitcoin down 30% from its January 2025 peak of $108,000, a test of the gap could trigger a deeper slide.

Volatility Storm: Will $80K Hold the Line?

BTC is presently sitting just above the supply gap, but the URPD chart’s sparse distribution between $70,000 and $80,000 marks a fragile point. 

Glassnode data suggests stronger support at $73,000, yet the intervening range lacks sufficient transaction volume to absorb downward pressure. 

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The current tension in the market—short-term holder selling and one-fifth of the supply at a loss—makes the risk greater. Analysts are now eyeing $80,000 as a critical support. A break below this technical safety net could release volatility in a market already regaining its composure after its post-$108,000 correction.

Bitcoin’s 2025 movements have been a mix of sharp surges and retreats, making this supply gap a major challenge. The November surge created this void, and its relevance is now watched by market analysts and traders.

While $73,000 offers a potential floor due to past trading density, the $70,000-$80,000 stretch provides little resistance to selling. Analysts recommend monitoring on-chain indicators, such as UTXO shifts and holder activity, while the market self-corrects.