Analysis: BTC On-chain Structure is Rapidly Tightening, Potential for Major Price Volatility Coming Soon
BlockBeats News, November 1st, analyst Murphy stated in a post that the current BTC spot price chip concentration within a 5% range has risen to 17.6%, reaching the highest level in nearly two years. This indicates that the chip structure is quickly tightening, and after energy accumulation, a potential large-scale fluctuation is on the verge of happening.
On September 30th, BTC's chip concentration within a 5% range of the spot price rose to 15%, shortly before BTC experienced a strong rebound breaking through its historical high. Looking at the performance of this data over the past 2 years, there have been 8 instances where the concentration exceeded 13%, and afterward, BTC has shown fluctuations of varying degrees. However, volatility measures the amplitude of the price movement, not the direction. The up and down movements are disorderly with no clear patterns to follow, but a significant fluctuation is imminent. This analysis is for learning and communication purposes only and should not be considered as investment advice.
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