Bitcoin Faces On-Chain Air Gap To $81,000: Will Momentum Build?

Data of the Bitcoin URPD shows a supply chasm exists between $72,000 and $81,000, potentially making resistance in the region relatively light.

Below is the chart shared by Martinez that shows the URPD for Bitcoin as it currently stands.

Earlier, the bearish price action had meant that Bitcoin slipped all the way to the $60,000 level. What had followed the decline was a consolidation period in the region below $70,000. As the price moved sideways here and trading occurred, supply saw repricing into levels falling inside the range, which is potentially why the region is now looking so dense on the URPD.

Generally, when the market mood is bearish, investors in loss can react to surges to their acquisition level by exiting the market. They may do so fearing that the price rally is only temporary and that they could fall underwater again. Due to this, large levels of the URPD that are situated above the spot price can act as potential centers of resistance in the future.

Since the $72,000 to $81,000 price range is relatively thin with supply right now, it may not provide too much resistance to Bitcoin. As the analyst explains, “if momentum builds, there is open air in that range.” For momentum to build, the support levels below might have to hold first. Just like how large supply zones above can provide resistance, those below can act as support cushions instead. This happens as investors accumulate more to defend their acquisition level.

As the Bitcoin market sentiment has been quite bearish recently, it remains to be seen whether dips into the supply cluster at $70,000 and below will be met with buying.

At the time of writing, Bitcoin is trading around $70,500, up 4% over the past week.