The UTXO Gap and Bitcoin's Struggles

So, the pre-election hype in 2024 created a risky gap on Bitcoin's weekly chart. Traders are familiar with this issue from those big impulse candles that leave no support lines for analysis in a broad price range. When Bitcoin drops, there’s nothing to catch it since traders usually put their limit orders at key support or resistance levels. The last support was around $80K, and the bulls are really trying to hold that. If the drop keeps going, the next support is around $70K. Things are even trickier with the GAP effect. This is when there's a price gap on the chart with no trades happening. This typically occurs after a weekend or when stock markets open, but since Bitcoin is 24/7, you wouldn’t expect gaps in crypto. But the on-chain data paints a different picture. The UTXO price distribution shows a nearly empty zone between $73,000 and $80,000 because prices zipped through there too fast without much trading activity. Gaps have this magnet-like pull on prices. Until this gap gets filled, we might not see a consistent rally. Right now, Bitcoin's holding steady thanks to the average entry price for spot ETF investors, which is about $79K. So, it all comes down to whether institutional investors are ready to