Analysis: BTC chip concentration dropped from a high of 15.5% to 8.2% in 7 days, and market uncertainty increased

Mars Finance News, on May 19th, on-chain data analyst Murphy analyzed the concentration of BTC chips. From May 7th to May 14th, the concentration of BTC chips dropped from a high of 15.5% to 8.2% within just 7 days. This indicates that as the price rises, it has gradually moved away from the chip concentration area. If the concentration curve continues to decline, it is highly likely to be accompanied by a continued price increase. After May 14th, the concentration curve suddenly stopped declining around 8.2% and slightly showed a turn upward. The density of 8.2% is not significantly too high or too low. If the price falls back to the BTC chip concentration area, the concentration curve will rise rapidly again and brew greater volatility. Similar to the chart on January 23rd, 2025, the chart shows that the concentration dropped from a high point due to a price pullback, then turned upward midway, after which the price volatility was amplified. Another possibility is that the price continues to rise, and the concentration curve will pause briefly before continuing to decline, similar to the situation on November 3rd, 2024. In summary, the current concentration curve not continuing downward but pausing midway will bring uncertainty to market direction. It is difficult to predict whether to be long or short through a single indicator, but the concentration curve suggests that the market may choose a volatility direction again. When the concentration rises to a certain height, considering going long on volatility would be a good choice. Market views are shared only for learning and communication, not as investment advice.