In the recent Bitcoin market trends, a highly watched on-chain indicator—chip concentration—has once again released a key signal. On June 9, the concentration reached 12%, and the market expects it to quickly move toward 13%-15%. However, when the Bitcoin price surged to $110,000, the concentration unexpectedly declined. The reason is that the current chips are mainly distributed in the $104,000-$105,000 range, while there are fewer chips near $110,000, which could not support a further increase in concentration.
Recently, the Bitcoin price fell back to the $104,000-$105,000 range, and the concentration indicator showed a turning point, beginning to rise steadily. As long as the price stabilizes in this range, concentration will continue to accumulate until it breaks through a key threshold, which may trigger significant market fluctuations. However, if the price rebounds again, the upward trend may be temporarily interrupted.
Looking back at December 2024, the concentration also experienced a brief decline on its way up, and then continued to rise (see the red shaded area in the chart). At that time, the Bitcoin price was repeatedly consolidating within a fluctuating range, and only when the concentration reached a high of 16.9% did it encounter significant volatility. Now, the market trend is quite similar to that time.