Bitcoin Faces Choppy Waters After Slipping Into $70K–$80K ‘Liquidity Gap’

Bitcoin Enters “Air Pocket” Zone, Opening Door to Wild Price Swings

Bitcoin (BTC) is showing signs of increased instability after slipping below $75,000 for the second time in a week, suggesting that a period of heightened price turbulence may be on the horizon.

Since peaking at a record $109,000 in January, the cryptocurrency has been steadily retreating. It now finds itself in a tricky area on the charts — between $70,000 and $80,000 — a range that analysts at Glassnode have dubbed an “air pocket” due to a noticeable lack of historical trading activity.

This zone formed during bitcoin’s sharp post-election rally in November, when prices surged from around $70,000 to over $100,000 without much pause. Because bitcoin moved through this range so quickly, very few investors bought or sold in it, leaving little in the way of supply or demand support.

When price returns to such low-liquidity zones, wild swings are more likely. There are simply fewer market participants anchored at those levels, which can result in sharp moves up or down with little resistance.

On-chain data supports this: Glassnode’s UTXO Realized Price Distribution shows less than 2% of bitcoin’s supply last moved in this range. That lack of volume means the market may struggle to find stability here unless it consolidates and builds up fresh interest.

Currently, about 25% of all BTC is being held at a loss — primarily by investors who entered during the late-stage rally. If panic sets in, that could trigger a wave of selling pressure, potentially pushing prices even lower.

For now, traders are watching closely to see whether bitcoin can stabilize in this zone — or if the air pocket becomes a free fall.

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