BlockBeats News, November 26th, on-chain data analyst Murphy released an analysis stating that the Bitcoin CBD Quantiles Curve shows that the market’s chips are undergoing a significant reshuffle. CBD Quantiles: BTC buy-in cost divided into 1%-100% based on address count, used to observe the distribution and migration direction of daily chip costs.
Purple Line: 65th percentile cost, meaning 65% of addresses hold BTC at a cost lower than this value. The illustration reveals that when BTC falls below $100,000, high-end chips (red line 75th percentile) quickly shift downward, while low-end chips (purple line) move upward simultaneously, indicating that high-end chips are being absorbed by low-end funds—meaning the market is undergoing a “shakeout.”
It is crucial for the current BTC price to find support at the purple line, indicating that 65% of addresses are still in a profitable state on-chain, providing the market with a last ray of hope. However, it is essential to note that this includes some long-term inactive or “frozen” addresses, such as Satoshi Nakamoto’s holdings.
Looking back at the previous cycle, when the support of the purple line was breached, Bitcoin entered a long-term downtrend, and new funds were forced to turnover to lower percentiles as the price fell, leading the market into a deep bear phase. Short-term observation: if the purple line continues to support, chip reshuffling may still be ongoing, providing the market with a breathing opportunity; if the support is lost, a new round of downward pressure may be on the horizon.
