Bitcoin Dips Into “Air Pocket” Range, Setting Stage for Volatility
Bitcoin (BTC) is trading in a historically thin price zone between $70,000 and $80,000, raising the odds of volatile price action in the near term. After twice falling below $75,000 this week, BTC continues to retreat from its January all-time high of $109,000.
On-chain data from Glassnode identifies this range as a so-called “air pocket” — an area with little historical trading activity, formed during BTC’s post-election surge in November when prices jumped from $70,000 to over $100,000 in a near-vertical rally.
Because BTC never consolidated in this zone during its climb, few coins changed hands here. That’s confirmed by the UTXO Realized Price Distribution (URPD), which shows less than 2% of the total BTC supply last moved in this range. Such thin liquidity zones often act as fast lanes — price tends to move quickly through them due to the lack of supply resistance.
Around 25% of circulating BTC is now held at a loss, mostly by short-term holders who bought within the last five months. With weak hands under pressure and a lack of historical support in this price band, further downside volatility remains a strong possibility unless buyers step in to stabilize the range.
Until then, traders should brace for choppy conditions — and potentially rapid moves in either direction.
