Bitcoin extended the correction below the psychological level of $100,000 in the last 24 hours. At the time of writing, Bitcoin is struggling to stay above the $94,000 level after briefly rebounding from its recent crash to $91,000.

In the current environment, Bitcoin’s price outlook has taken a cautious turn, with cryptocurrency analyst Ali Martinez highlighting a $12,000 gap between $87,000 and $75,000. Analysiswhich is based on the Bitcoin UTXO Realized Price Distribution (URPD) ATH-Partitioned system, reveals a lack of significant support in this regard and raises concerns regarding a rapid drop towards $75,000.

The $12,000 void shows a lack of support between $87,000 and $75,000

Data from Bitcoin’s ATH-Partitioned UTXO Realized Price Distribution (URPD) metric shows that the $87,000 to $75,000 range is missing significant realized price activity. UTXO is a relatively tranquil but essential technical indicator that provides insight into the distribution of Bitcoin at various price levels and focuses on UTXO (Unspent Transaction Outcomes).

Therefore, UTXO analysis helps identify the price levels where Bitcoin holders are currently sitting on realized gains or losses.

As Ali Martinez noted, the $87,000 to $75,000 range opens a $12,000 gap that could easily turn negative for Bitcoin. This is because this range represents “little or no support”, meaning there is not enough buying activity historically to stabilize Bitcoin’s price if it enters this zone. Therefore, this void increases risk of acute correction if Bitcoin falls below the upper limit.

Market Implications of the $12,000 Gap

As it stands, the threat of a $12,000 loss may only be valid if Bitcoin falls below $87,000. While Bitcoin has largely held above $90,000 even during corrections since November, the recent drop to $91,000 opens the possibility of an eventual drop below $90,000. This fear is reinforced by moving the Crypto Fear and Greed Index to the neutral zone, accompanied by a acute raise bearish sentiment on social media.

If Bitcoin falls below $90,000, it could open up the possibility of a further decline to $87,000. This, in turn, would most likely lead to a quick drop to $75,000. This scenario would undoubtedly test investor bullish sentiment and Bitcoin’s ability to sustain forecasts of the long-term upward trajectory.

On the other hand, it can be safely argued that the ongoing consolidation opens up the possibility of accumulating more BTC. According to CryptoQuant analyst, the short-term SOPR is currently below 1, which means many short-term investors are selling Bitcoin at a loss. However, history shows that this phenomenon often precedes and causes a immense uptrend good time to accumulate.

At the time of writing, Bitcoin is trading at $94,350.

Featured image from Getty Images, chart from TradingView