Bitcoin's support dilemma around the $80,000 range: requires a longer consolidation period to strengthen the foundation

Based on on-chain data analysis, Bitcoin currently faces a noteworthy issue in the $80,000 range—insufficient historical support strength. Data shows that Bitcoin has only stayed in the $70,000 to $80,000 range for 28 trading days, making it one of the shortest consolidation periods in history.

Imbalance in Price Range Distribution

This short duration brings a hidden risk. In comparison, Bitcoin has spent more trading days in the $50,000 to $70,000 range for most of 2024, accumulating a thicker support layer. The $80,000 and above range lacks the same level of market consolidation.

Since reaching a historical high in October, Bitcoin has mainly moved within the $80,000 to $90,000 range throughout December. Although this correction pulled the price back to the $70,000 to $80,000 range, the support foundation of this zone has not been tested sufficiently.

Signals from On-Chain and Futures Data

More concerning is the performance of on-chain supply data. The supply in the $70,000 to $80,000 range is noticeably low, and futures market data also confirms this phenomenon. The consistency between these two independent data systems indicates that the actual accumulation in this price band is lacking.

Future Support Needs

If Bitcoin triggers another correction, the $70,000 to $80,000 range may need more time to consolidate, establishing a more layered and robust support structure. Current historical data suggests that the support strength in this zone still lags behind lower price ranges, which introduces variables for the subsequent trend.