Bitcoin may have recently looked unstable below $70,000, but a ton of BTC was traded then, a sign of a sharp drop in demand.
This is evident from blockchain data, which shows that the total amount of BTC that was last moved on-chain in the $60,000 to $70,000 range now stands at 1,845,766 BTC, up from 1,001,491 BTC on January 1, according to data source Glassnode. This increase to 844,275 BTC indicates that some market participants have been aggressively buying the dip below $70,000.
More importantly, this figure of 1.84 million BTC represents approximately 9.23% of the circulating supply of Bitcoin. This means that valuations below $70,000 could serve as a floor, as many coins are “anchored” there and sellers might be reluctant to sell below that floor.
These numbers are derived from Glassnode’s Realized Price Distribution (URPD) metric, which shows the price levels at which the current set of Bitcoin UTXOs – essentially, individual pieces of Bitcoin in wallets – were last moved. Each bar, as shown in the feature image, represents the amount of bitcoin held at a given price. This version is entity-adjusted, meaning that coins owned by the same owner are grouped based on the average price at which they were acquired.
While the $60,000 to $70,000 range has seen strong activity, the $70,000 to $80,000 range appears relatively thin, according to Glassnode. Only 400,000 BTC is in this range, almost half of the amount traded below $70,000.
Bitcoin rebounded above $70,000 following the temporary ceasefire between the United States and Iran. The cryptocurrency has spent most of the past five weeks trading below $70,000. Yet it has remained resilient compared to traditional risk assets, such as stocks, which withered when the war in Iran sent oil prices above $100 a barrel.
