From May 7 to 14, the BTC concentration of chips dropped rapidly from 15.5% to 8.2%, indicating that as the price rises, the chips begin to disperse. If the curve continues to decline, it likely means that the price will continue to rise.
However, after the 14th, the concentration stabilized around 8.2%, even showing slight signs of turning. This concentration level is neither high nor low; if the price drops back into the chip zone, the concentration may quickly rise, leading to stronger volatility, similar to the market on January 23 of this year; if it continues to rise, it may only be a brief pause like on November 3 of last year, followed by further increases.
Overall, this kind of "pause" means the market is once again at a decision point regarding direction. This indicator does not currently indicate a direction but reminds us that volatility may intensify, making it suitable to consider a long volatility strategy.
