Market Dynamics Indicated by BTC Address Cost Distribution

According to Odaily, on-chain analyst Murphy has highlighted the significance of the CBD Quantiles chart in analyzing the distribution and movement of market holdings by dividing the buying costs of addresses. The purple line on the chart represents the 65th percentile cost basis, indicating that 65% of BTC addresses have a holding cost below this value. A rapid decline in the high percentile line coupled with an upward movement in the low percentile line suggests that higher-priced holdings are being acquired by lower-priced funds, indicating a turnover of holdings. Currently, it is crucial for the BTC price to maintain support at the purple line, as this implies that a majority of addresses (65%) are still in a profitable position. In the previous cycle, BTC prices entered a prolonged downward trend after breaking below the purple line support.