Analysis: It is crucial for the BTC price to find support at the 65% address holding cost line

On-chain analyst Murphy stated that the CBD Quantiles chart divides the buying costs of addresses to observe the distribution structure and migration direction of market chips. The purple line represents the 65th percentile cost basis, meaning that 65% of BTC addresses have a holding cost below this value. If the high percentile line quickly moves down while the low percentile line moves up, it indicates that high-position chips are being taken over by low-position funds, and the chips are changing hands.

Currently, it is extremely important for the BTC price to find support at the purple line, as this indicates that the majority of addresses on-chain (65%) are still in a profitable state. In the previous cycle, the BTC price entered a long-term downward trend after breaking below the purple line support.