BlockBeats News, May 19th, on-chain data analyst Murphy posted an analysis of BTC's concentration of funds. From May 7th to May 14th, in just 7 days, BTC's concentration of funds dropped from a high point of 15.5% to 8.2%. This indicates that as the price rises, it has gradually moved away from the concentration zone. If the concentration curve continues to decline, it is highly likely that the price will continue to rise.

After May 14th, the concentration curve around 8.2% suddenly stopped decreasing and slightly showed a turning point upwards. A concentration of 8.2% is not significantly high or low. If the price falls back into the BTC concentration zone, the concentration curve will rise rapidly again, brewing greater volatility. Similar to the situation on January 23, 2025 in the chart, where a price correction led to a decrease in concentration from a high point and then a midway turn back up, followed by an amplification of price volatility. Another possibility is for the price to continue to rise, with the concentration curve pausing briefly before continuing downwards, similar to the annotated situation on November 3, 2024 in the chart.

In summary, the current concentration curve, instead of continuously declining, pauses midway, bringing uncertainty to the market direction. It is difficult to predict whether to be bullish or bearish based on a single indicator. However, the concentration curve indicates that the market is likely to choose a direction of volatility once again. When the concentration reaches a certain height, considering a long position on volatility would be a good choice. Market views shared are for learning and communication purposes only and are not investment advice.