Analyst: BTC chip concentration fell from a high of 15.5% to 8.2% in 7 days, as market uncertainty increased

On May 19th, on-chain data analyst Murphy published an analysis of BTC chip concentration. From May 7th to May 14th, BTC's chip concentration dropped from a high of 15.5% to 8.2% in just 7 days. It shows 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 that the price will continue to rise.
After May 14, the concentration curve suddenly stopped falling at around 8.2% and showed a slight reversal, and the 8.2% concentration was not significantly too high or too low. If the price fell back to the BTC chip concentration area, the concentration curve would rise rapidly again and brew more volatility. Similar to January 23, 2025, the chart shows that after the price correction caused the concentration to fall from a high level, it turned back up halfway, and then the price volatility was magnified. There is also a possibility that the price will continue to rise, and the concentration curve will continue to decline after a short pause, similar to the situation on November 3, 2024 when the picture won the bidding bet.
The conclusion is that the current concentration curve does not go all the way down but stops halfway, which will bring uncertainty to the market direction. It is difficult to predict whether to be bullish or bearish through a single indicator. The single concentration curve indicates that the market may choose the direction of fluctuation again. When the concentration level rises to a certain height, it is a good choice to consider long volatility. Market opinion sharing is only for learning and communication, not as investment advice.