The Secrets Behind Bitcoin Prices: Why Are Concentration Zones Prone to Major Fluctuations?

Recently, many players have been puzzled about why the 'concentration of chips' has been rising and how it may lead to violent fluctuations. By analyzing on-chain URPD (Realized Price Distribution) data, a clearer understanding can be obtained.

From the overall price distribution, the current Bitcoin chips show a significant concentrated structure, especially concentrated in the key ranges of $92,000 to $98,000 and $100,000 to $106,000. The former accounts for about 10% of the total circulating supply of Bitcoin, while the latter reaches as high as 12%. In other words, just a $15,000 price range has accumulated 22% of the circulating chips, forming a significant structural concentration area.

Additionally, within the narrow range of $104,000 to $105,000, there are currently over 1.266 million Bitcoins piled up. This level of chip accumulation is rare, indicating that institutional funds are deeply involved, making it difficult for ordinary players to continue buying in large quantities at this price level.

The problem is that when the price oscillates repeatedly in these concentrated areas, it is bound to lead to a greater degree of chip concentration. However, the market is essentially in dynamic equilibrium, and chips cannot accumulate indefinitely; they will ultimately be forced to redistribute to other price areas, either breaking upward or releasing downward.

At the same time, the concentrated chip zones are extremely sensitive to price changes. Once there is a slight fluctuation in the market, some holders may quickly waver, accelerating market turmoil and amplifying price responses.

The current structure indicates that the Bitcoin market is approaching an important directional choice node, and subsequent fluctuations may significantly intensify.