a more detailed explanation of an image that was posted here recently

This image is a heatmap of Bitcoin holders by price range, provided by the Glassnode platform, which specializes in on-chain analysis.

Explanation of the image:

Y-axis (vertical): Shows "Price Bucket (USD)", i.e., price ranges of Bitcoin. It ranges from about 94 thousand USD to 112 thousand USD.

X-axis (horizontal): Represents time, from the end of April to May 24, 2025.

Colors: Represent the amount of BTC supply that was moved/bought in each price range:

Red/orange: High concentration of BTC moved (many bought at this price).

Yellow/green/blue:

The purpose of this heatmap of holders by price range is to help investors and analysts understand where the main levels of buying and support for Bitcoin are. It shows at which prices most bitcoins were moved or acquired, revealing:

Main purposes:

1. Identify support and resistance zones:

Ranges with high concentration of buying (red/orange) tend to act as support (where the price may stop falling).

If the price falls, investors who bought in these zones may try to buy more, stabilizing the price.

2. Analyze market sentiment:

Many BTCs bought at low prices indicate strong confidence from holders (those who hold BTC).

Accumulation in high zones may signal confidence in future increases.

3. Assess risk of decline:

If the price is well above zones with high buying, there may be a risk of realization (selling) and correction.

4. Strategic decision-making:

Traders use this to decide entry and exit points.

Long-term investors analyze where the market is accumulating.

Example from the image:

A lot of buying occurred between 94k and 98k USD (red ranges).

The price rose afterward and formed new accumulation zones around 100k-106k.

Now, the price is on a strong rise, reaching 112k, which may indicate enthusiasm or euphoria.