Analysis: Bitcoin has a dense turnover of chips at $87,000, indicating that the market is about to choose a direction

Data analyst Murphy stated that the Bitcoin cost distribution chart shows a significant chip distribution (large volume bars) at $87,000 and $84,500, which is notably higher than other price levels. After excluding the factor of the large-scale wallet consolidation on Coinbase on November 22, there are currently 1.12 million BTC in the $83,300-$84,500 range, of which the actual turnover should be reduced by at least half. Therefore, $87,000 represents the highest large volume bar and is currently the strongest support level in terms of chip structure.

Based on past experience, when a large amount of chips concentrates in a narrow range to form a large volume bar, it indicates that the market is about to choose a direction. The essence of chip accumulation is the divergence between bulls and bears, and when the game reaches a critical point, a winner must be determined. Murphy believes that from the perspective of chip structure, the outlook is bullish. As long as the effective support of the large volume bar can be maintained, the direction will become clearer.